Legal And Financial Aspects That Will Affect The Start Up Of The Business

There are several different types of business ownership which are most commonly used in business’ and company’s today, these include; Co-operative which is a business owned by its employees, Partnership which is a business owned by between 2 and 20 people, Private limited which is a business owner by a small groups of people who have shares and a Public limited business is owned by private individuals by shares bought and sold on the stock market. A charity is a business with the purpose to help the public, the government is a business owned by the government and lastly a sole trader which is a business owned by only one person.

Also, to be certified the individuals wanting to start a business must be willing to, upon request, provide evidence that it is eligible and will continue to be so during the course of the contract. They must also be willing to be audited regarding certification, and acknowledge that if it is not, the business can face civil

The last business option that will be discussed is the Corporation. A Corporation is “a fictitious legal entity that is created according to statutory requirements” (Cheeseman 478). The biggest advantage of a corporation is the protection of personal assets. Shareholders, directors and officers are typically not liable for the company’s debts and obligations. This is limited to the amount of money they have invested into the corporation. Since the corporation is separate from the owners, transfer of ownership is an easy task. Also corporations are generally taxed at a lower rate than individuals in the United States. A corporation is not as simple to form or maintain as other business formations. Articles of incorporation must be filed with the secretary of state and an organizational meeting must be held to elect a board of directors. A corporation also requires, at the least, an annual report so that creditors that do business with the corporation can determine the creditworthiness of the corporation. Also the corporation is taxed on its profits

For this task I have been asked to describe the legal and financial aspects that will affect start-up of the business

All profits belong to the owner of the business in addition to all debts, losses, and liabilities (Small Business Association). In order to form a sole proprietorship, a business owner must simply begin practicing their business. There are no legal or formal actions required to form a sole proprietorship (Malinak). In order to sustain, such a structure, one must obtain the correct licenses and permits. These are obtained by meeting legal requirements set by the state and local government for the applicable industry (Bloomsbury). When one is considering different business structures, they must also consider the taxation methods of the various structures, as these methods vary. In a sole proprietorship, the business is not taxed as a separate entity from the owner of the business as they are considered to be the same being (Small Business Association). Now that all of the information has been gathered on this structure, it is imperative to evaluate the advantages and the disadvantages of this model. The advantages of a sole proprietorship are simple and low-cost formation of the structure, complete control of business by sole owner, and low tax rates. Some disadvantages of a sole proprietorship would include complete personal liability and the difficulty of running a business as the lone owner and employee (Bloomsbury).

4. Government. You need to submit paperwork to form a business entity, you should probably get at least one or more licenses or license, you must be careful to avoid all

First of all the company must be register in Companies House and there is a fee need to be paid. Also there is some extra cost related running that kind of business like: financial information must be publicly available and copy of that statement must be send to Companies House. Partnership agreement should be drawn up setting out how it will run and LLP how profits will be shared.

space lease or purchase, raw materials, labor costs, etc. Provide a rationale for your estimates.

The choice of legal status for setting up a new company can be complex and is dependant on various tax, commercial and legal considerations (Accountingweb, 2014).

There are many types businesses in this world; these include Sole trader, Plc, Ltd, Partnership, Co-op and

When considering to form a new business the ‘Starting a Business’ within the Starting & Managing tab is the first and most important place that every individual should start off at. The section helps ease the decisions that are involved in starting a business, most importantly it prompts the reader a reality check to see if starting a business is right for them, ultimately saving time and money. In addition it outlines the whole business structure from writing a business plan and choosing a business structure that will property fit the plan, the process of registering a new business, the physical location, laws involved, business financials and hiring employees. This while information should be known by individuals who plan on starting a business with the hopes of longevity and

After the creation of a business plan, the next step to operating a business is the selection of an appropriate business structure. Different legal forms of business ownerships affect different managerial and financial factors from the business names to the tax obligations (Gregory, n.d.). The most common forms are sole proprietorship, partnership, cooperatives, and corporations. There are different types of corporations in the business world, but the two most general corporation types are S Corporation and Limited Liability Company (LLC) (Ferrell et al., 2013). The sole proprietorship is the easiest and most basic form of business ownership. It is owned and run by one individual, which is the proprietor. The individual is entitled to all profits and is responsible for all the business’s

Some business like pubs and clubs, nursing homes, cinemas, theater, taxis and pet shops need to require a license.

Legal Structure of a Business Orgnanisation Business organisations are the different legal forms a business can adopt. The key distinction is that some businesses provide limited liability for any debts the business incurs. Others have unlimited liability - which obviously doesn't [IMAGE]Unincorporated Incorporated Up Arrow Callout: Sole-trader Up Arrow Callout: Partnership Up Arrow Callout: Private Limited Company (ltd)

Those legal structures are: sole trader,partnership,partnership with limited liability(LLP),private limited company (LtD) and public limited company (PLC).