Business – 1.2 Business structure – Business ownership | e-Consult
1.2 Business structure – Business ownership (1 questions)
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Key characteristics:
- Sole trader: Owned and run by one individual; unlimited personal liability for debts; simple financial reporting – only personal tax return and basic accounts.
- Partnership: Two or more individuals share ownership; partners have joint and several unlimited liability (unless limited partnership); must prepare partnership accounts and each partner files personal tax return on share of profit.
- Private limited company (Ltd): Separate legal entity; shareholders own the business; limited liability to the amount unpaid on shares; must file annual accounts, corporation tax return and comply with Companies House filing requirements.