This document discusses different types of business structures including sole traders, partnerships, private limited companies, and public limited companies. Private limited companies (LTDs) are typically small to medium in size and sell shares privately to friends and family, with the founder owning 50% of shares. Public limited companies (PLCs) are usually large businesses that sell shares to the public on stock exchanges, requiring a minimum of £50,000 capital to establish. Both LTDs and PLCs provide owners with limited liability for the amount they invested.

1. Different Types of Business Types of Businesses Sole Traders Partnerships Private Limited Company (LTD) Public Limited Company (PLC) Franchises Multinational Companies

2. LTDs and PLCs These are both types of companies. Companies are usually larger than partnerships/sole traders They can be local companies and multi-national giants. When a company is ‘limited’ it means that the owners have limited liability. Only responsible for the amount that they invested, not personally.

3. Private Limited Company (LTD) A LTD is usually small to medium – size and sells shares privately to family and friends. The founder usually owns 50% of the shares. All shareholders have Limited Liability. There must be at least 1 director / 1 shareholder and 1 secretary.

4. Public Limited Company (PLC) A PLC is usually large and sells shares to the public You need a minimum of £50,000 capital to set up a PLC The money is raised by issuing shares on the stock exchange. Anyone can buy shares in a PLC To set up a PLC you need to work through a set procedure.