Describe the legal and financial aspects that will affect your business start-up.

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Unit 10

A4 P4

Describe the legal and financial aspect that will affect your business start-up

Legal aspects - Introduction

There are many laws and regulations surrounding the conduct of a new business. All businesses will have similar legal responsibilities.

For my business I choose the legal status to be sole-trader, because is the simplest and the cheapest form of business to set up.

Advantages of being sole-trader:

* The business can be easy to set up

* Independence in decision making

* Minimum of paper work

* The sole trader may have flexible working hours

* Knowing customers helps to avoid bad debts

Disadvantages of being sole-trader

* Unlimited liability means the owner is responsible for all debts

* Long working hours

* In case of illness the business is closed and makes no money

* Difficult to rise capital for start up or to expand business

The key legal aspect is liability, which means I as the owner of the business will have legal responsibility for the actions and the finance of the business itself. Because I choose