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

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I will be assessing the implications of legal and financial aspects that will affect the start up of the business. I will be discussing how these legal and financial aspects affect the business and why do I need to follow these guidelines to ensure my business is successful in its industry.
Legal aspects
When starting up a business there is multiple numbers of legal requirements that must be passed in order to be granted permission to run the business.
Legal Status of the Company
When deciding to start operating a business one of the initial and most crucial decisions that will be important throughout the existence of the business is to decide on what is the legal status of your company. This will affect how the owner is able to operate the business and will have further implications for example how the business will pay tax and record your accounts of the finances of the business. The two main choices that will be given are: sole trader meaning that the business will be owned by only the person who is starting it and they are responsible for everything and limited company, this is a business who can have multiple owner but, in the case of the business going bankrupt only what the owners invested can be taken accountable as assets.
It is possible to change the legal status in the future but, it would be a long process and is not very positive on the business finances.
Licensing for The Company’s Name
Depending on whether, my business is a sole trader or limited company

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