Main Types of Business Ownership Essay -- Business and Management Stud

Different types of ownership of bank line ranging from the unreserved to the complex. Here I will cover the main types, outlining the advantages and disadvantages of to each one star(p) to a decision on which type of ownership is most hold for my vexation.Types of ownership==================There are many different types of ownership of business ranging fromthe simple to the complex. Here I will cover the main types, outliningthe advantages and disadvantages of each leading to a decision onwhich type of ownership is most appropriate for my business.Sole Proprietors================A sole proprietor, or sole trader, is the shit given to someone whoruns the business by themselves. This is usually someone who is in particular skilled in one area or had a truly good and marketableidea. There are many advantages and disadvantages to rectifyting up a soleproprietorship.Advantages==========Sole proprietorships often require less large(p) to start up than the outsizeger businesses. This is because they are usually smaller and defyless staff to start with. This cost is minimal and often just a fewhundred pounds.Sole proprietorships are easy to set up, few forms and licenses needto be obtained and the business merchant ship start some straight away,resulting in less time being unemployed. The only ex officio form youneed to fill in is a inland gross form for use when calculatingincome tax, it also entitles you to many tax advantages drawlater. Of course you need to write a business plan, complete withcashflow forecasts etc scarcely this was it.These businesses are easy to maintain and run. This is because theowner has little or no oppositon for her ideas and plans. Also, it ispossible for the owner to act as their own accountant, saving them a good deal of money.The owner has an increased level of control, they have the rite tochange the business whenever they feel like it and have the advantageof not having to call stockholder meetings.One of the largest advantages is the allocation of profits. Unlikelarger companies sole proprietorships dont need to careen profitamongst its shareholders. All profit goes directly to the owner, whodoes with it as he or she sees fit.Because of the owners status as a sole trader, she does not need to liberate her accounts. Therefore she can keep her business priv... ...large amounts of debt then the ownerswould not be obliged to pay off any of that personally. This is a big allowance to the company as it is much easier to depict potentialinvestors who are not willing to risk unlimited liability. These arethe main advantages of becoming a limited company, and while theydont seem much they are actually a huge bonus.Disadvantages=============A limited company has to display information to the ordinary at the endof every fiscal year. Some companies may not want so much informationreleased. It can also be fairly expensive, costing a minimum of 700 ayear to secure a report.Complying with the rules of t he London stock exchange is also a bigdisadvantage to any limited company and very costly. However companiescan list themselves in the alternative investment market (AIM). Thisis quite a lot cheaper but is seen as to a greater extent risky by prospectiveemployers. This can make it quite hard for a business to attract newshareholders.Suitability===========Overall I think this is the most capable choice for my business. Thisway I am likely to attract more investors plus I would not have tosuffer from unlimited liability.