Appropriate legal structure
sole traders, partnerships and shareholders.
A sole trader is one person who works for themselves.
A partnership is a group of people between 2 and 20 working together.
shareholders is many people which all own a small part of a business.
private limited company
a private limited company (PLC) is a business which can only be owned by family and friends.
unlimited + limited liability
unlimited liability is where if your company loses significant amounts of money unlimited amounts of personal pocessions can be taken however limited liability only a limited amount of things can be taken.
public limited company
(PLC) this is a company which can be owned by people of the public
pros of a sole trader
make your own decisions
work as many hours as you want
keep all profit
cons of a sole trader
pros of a limited company
raise lots of money
gain more customers
cons of a limited company
no outside investers
may take longer to expand
why change your legal status?
by changing your legal status you are automatically increasing your reputation and chance of being famous which results in outside investors helping your company expand into the future.