Appropriate Legal Structure

sole trader

Sole Trader

A sole trader is one person who own their own business

The pros about being a sole trader are you get to make your own decisions, you work long hours but you get to keep all the profit you make rather that having to give it to workers.

The cons of being a sole trader that you have all the responsibility and no one is there to help you. You would also have to work long hours. The last con unlimited liability which is if you go into too much debt they can take your personal belonging like your house and stuff from inside your house.

Partnership

A partnership is a business owned by 2-20 people who work together.

The pros of being in a partnership is that you can be more successful if you partner with more experienced owners and you wont have to handle everything yourself so your less likely to lose your business.

The cons are that you will make less money because you have to share the profit and you wont always agree on business ideas so you will have to make shared decisions.

Private Limited Company (LTD)

A private limited company is a business owned by family and friends. The pros are you can raise more money, gain more customers and limited liability.

A public limited company (PLC) is a company that is owned by the public. You can raise more money and have limited liability.