Appropriate Legal Structure
Pros And Cons of Sole Trading/ Partnership
Pros: Own Decisions, own all profits made, flexible hours, limited liability and less tax paperwork. The Cons are; Responsibility falls on own person, sponsors rely on one person, long hours, unlimited liability.
A sole trader is a business run by one person and this business type is easier to change. A partnership is 2 to 20 people running a business that doesn't include any shareholders. Shares are small segments of a business and share holders own parts of a business. Unlimited liability and limited liability is the difference between responsibility for debt. A Public Limited Company is a company owned by anybody.
The reason to change any legal status would be national worldwide expansion and maybe shareholders could make that happen effectively, another reason would be financial distress or maybe a company might need to change to a privately run company.
Real Life Examples
Simply put Coca Cola is a Public Limited company and that also means it is possible for the public to buy shares.