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Mrs Needle With Advice On What Legislation She Should Look Out For

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The aim of this report is provide Mrs Needle with advice on how to raise finance, what legislation she should look out for and also to give a discussion on the risks she can expect her business to face and how to reduce these risks. In order for me to provide a more detailed report I feel it is necessary for me to first give Mrs Needle my opinion on the most appropriate legal structure for her business, now that she has decided to no longer operate as a sole trader. Choosing the appropriate business structure is very important as it directly effects the legislation you must comply with, specifically the paperwork required to get the business started, personal tax responsibilities and individual accountability for liabilities of the business.

Currently Mrs Needle is successfully operating as a sole trader, however now that she wishes to expand the business and incorporate four new members into the business Mrs Needle must consider operating as one of the following business structures, an ordinary partnership, limited liability partnership or a limited company. At the moment the dressmaking business is being run on a fairly small scale out of Mrs Needle’s home, therefore I would not recommend at this stage the business being run as a limited company. This is because as a limited company you are expected to pay corporation tax, in addition to this Mrs Needle and her partners will still be required to pay income tax from there directors salary. If the dress making business is
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