Types of Organization

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Sole Trader

Register with tax authorities and HM revenue and cutsoms

Controlled and owned by 1 person

:( Long hours/hard work

:( Unlimited Liability

:( Multi-skilled

:) All profits

:) alll decision making and control

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Partnerships

Deed Of Partnership

owned and controlled by 2-20 ppl

Follow laws in PARTNERSHIPS ACTS

Registration fee

:) Easier to run than sole trader

:) Some have limited liability due to LIMITED PARTNERSHIP ACT

:( majority have unlimited liability

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Companies

Owned by shareholders

Controlled by Board of Directors

ARTICLES OF ASSOCIATION info on day-2-day running

Must comply with COMPANIES ACTS

Sign STATUTORY DECLARATION - understand laws and agree

:) business has seperate legal Identity to

:) Shareholders can raise money

:) More specialized than sole trader and partnership

:) Unlimited Liability

:( lots of people to organize

:( hard to set up

:( expensive (solicitor must draw up MEMORANDUM OF ASSOCIATION)

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