Need an research paper on you have recently been appointed as a graduate trainee, advising on the legal aspects of setting up and running small businesses. your first client, sophie tells you that she

Need an research paper on you have recently been appointed as a graduate trainee, advising on the legal aspects of setting up and running small businesses. your first client, sophie tells you that she plans to start up a business with her best friend jess, selling hand-made crafts. Needs to be 8 pages. Please no plagiarism. Legalities of initializing a business are also dependant on what type of business is to be established, and persons that are to run the business. Failure to observe these basic legal considerations might render one’s business infringing against law and subject to certain legal implications.

The first major implication that any entrepreneur faces is the decision of the legal format of the business. There are various forms of business formats ranging from a limited company, sole trader to a partnership. In certain situations, it is a possibility for the establishment of limited liability companies. Each of the above stated business formats vary implicatively on the benefits and liabilities that are eminent to the entrepreneur who chooses to venture in any of them.

A limited company is a company formed under such principles that the members of the company are only liable to the company as much as how much they choose to invest in the company. The provisions for establishing a limited company are stipulated under the (Company Act 2006) and the (Corporation Tax Act 2009). The limitations of the partners in a company are by guarantee of the shares they have in the company as an entity. In a limited company situation whereby the members are limited by shares in the company, are categorized as private limited and public limited companies. In private companies, there are restrictions of who may become the member of a private limited company. this is by law and the established company rules.

When choosing to start a limited company, one should put certain things under keen consideration. These are the ownership of the company, the legal responsibilities and the implications of starting a legal company.