Local Business

Local Business  » Some general information about the small business organisation

Some general information about the small business organisation

Many of the larger businesses in the UK are public limited

companies which means that the public is able to buy and sell

their shares on the Stock Exchange. Such companies have the

letters plc after their name, and examples include Marks and

Spencer, Guinness and the National Westminster Bank. However,

since the minimum share capital for a public limited company is

50000 pounds, this makes it an unsuitable choice for small

businesses, which are more likely to take one of the following

forms:

Sole Trader or Sole Proprietor This is the simplest way of a

starting a business. You are self-employed and entirely

responsible for all aspects of running your own business. This

is especially suitable for small retail businesses.

Partnership When two or more people want to start a business

together they can set up a partnership and agree on how the

business will be operated. All partners are responsiblefor the

debts of the partnership and profits and losses are shared

between them.

Private Limited Company A company can be formed with a minimum

of two people becoming its shareholders. In order to establish

Today's Popular Articles

• What Software Do You Need For Your Small Business

• Getting Started: How to Create a Business Plan

such a company, specific administrative procedures must be

followed. For example, the shareholders must appoint a director

and a company secretary. If the company goes out of business the

responsibility of each shareholder is limited to the amount of

money that they have contributed. A private limited company has

the letters Ltd. (Limited) after its name.

Ab

out the small business organisation

About the author:

My profile at

informBank.