Appropriate Legal Structure
Pros: makes own decisions on all profits made, works long hours, limited liability and able to keep the profit. the cons are; responsibilities are important when being the only person, unlimited liability and long hours.
A sole trader is a business owned by the one person, this sort of business would be easy as you would make your money and you would have no one bossing you about. However, the negatives of being a sole trader is that you could lose all of your personal possessions and you would have to be in charge of everything. A partnership is 2-20 people working together it doesn't include any shareholders. shares are people who own a small part of the business. unlimited liability and limited liability.
private limited liability only take away a certain amount owned by family and friends. unlimited and limited liability is that you might lose all your personal possessions. a public limited company is owned by the public. the pros of a limited liability is that you raise more money, gain more customers. the cons of a limited liability is that you have to pay back what you have put into the business. why change legal status? this is because you can gain more money and if a success, you can make it bigger.