Sole traders are easy to set up but the owner is personally liable for debts. Limited partnerships have two or more partners who have limited liability for business debts. Companies incorporate, forming a separate legal entity where shareholders have limited liability for debts and the company pays corporation tax on profits.

1. BUSINESS
STRUCTURES
By Rhea Baliwala

3. SOLE TRADERS
- Easy to set up and run
- You keep all the profit but you are personally liable
for the debts of the business
- Your personal assets are at risk
- Register as self-employed
- Your profit is taxed as income

4. LIMITED LIABILITY PARTNERSHIPS
- Two or more people (Called Partners or Members)
- Seperate legal entity
- Limited liability for the debts of the business
- Drawings
- Each partner pays income tax

5. COMPANIES
- To incorporate a company
- Seperate legal entity
- Limited liability for the debts of the business
- Founders and Shareholders
- Pays corporation tax on its profits

6. FIND US ON SOCIAL MEDIA
@EBEACADEMY