By Alexis Mavrikakis; College of Law (England and Wales); et al
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Extra info for Business law and practice. [2011/2012]
13 What type of business is best? Faced with this array of different business formats, which one should the entrepreneur choose to run her business? If she has set up a business before then she may already know how she wishes to do it; but if, like most people, she has no previous experience, she may well have only a rough idea of how to structure her business. In this case it is, of course, best for her to seek professional advice, although by no means do all people do this before starting up, particularly as money is usually scarce.
See Chapter 25 for further information on the taxation of partners. A partnership has no separate legal status. The partners therefore have unlimited liability for the debts of the partnership. This means that, as with a sole trader, if the partnership fails, creditors can pursue not just the assets used by the business but the personal assets of the partners themselves. This liability is also said to be joint and several among the partners, allowing a creditor the choice of seeking the full amount of a debt from any one individual partner or from all the partners together.
Throughout its lifetime it must meet this community interest test. Community interest companies may not be formed to run political parties or be involved in political campaigning, and they must also not be legal registered charities. uk>. 2 Charitable incorporated organisations The Charities Act 2006 introduced the broad legal framework for a new legal form of corporate structure which is designed specifically for charities, the charitable incorporated organisation (CIO). The first CIOs are expected to be set up in 2011 once secondary legislation has been passed to provide the detail on how they will be established and operated.