Legal business formation

A very important decision for the entrepreneur to make is determine which legal formation for the new business should take. There are many ways that a business can be legally formed. Sole proprietorship or unlimited company is simple company formations. This is a type of business owned and operated by one person. The owner has unlimited liability for the debts of the business. If the business cannot pay its debts, the owner must do so from personal resources.

Another type of business formation is limited company. The main benefits of this area that should a business fail, limited liability can protect the owner or founder from personal loss, or even bankruptcy, which a sole proprietorship could not avoid. Two types of limited company are found in the UK: private and public LTD Company Formations. The limited private company has the attraction that it has independent legal status and limited liability. The founders can usually keep control of the business by taking majority of shares, and can control the transfer of shares from existing shareholders to a new, potential, shareholder. An unlimited company can reregister as a limited company, but a limited company cannot convert to an unlimited company. Today you can use UK company formations and company registration service to formed your busienss. To get more information about limited company formation you can go to highstone-formations.co.uk. They are

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