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You set up a Sandwich Shop on the High Street in Folkestone. What type of Business would you run, would you be a sole trader, a partner with another person or become a limited company?

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Introduction

You set up a Sandwich Shop on the High Street in Folkestone. What type of Business would you run, would you be a sole trader, a partner with another person or become a limited company? A sole trader is when one person has the only share in the company. The best example of this is a window cleaner. But a sole trader doesn't mean that you can't employ people, you could have as many employers as you want it just means that you have the only share in the company. A partnership is when you go into business with other people the minimum of people in a partnership set by the government is 2 and the maximum is 20. A partnership also doesn't limit you to the number of people you can employ. But the company will have unlimited liabilities this means that if your company goes under my investors can come after me for the money the company owes them. And you can lose everything if you go under A limited company can be 1 person or numbers of people who have shares in the company but you have to be invited to become an owner in the company by buying shares. ...read more.

Middle

Also the way the profits could be split on how much money each partner puts in. Say I worked more hours than my partner at the sandwich shop but my partner put in more money in but worked less hours the money could then still be split equally. Another benefit of being in a partnership is that if I got in to trouble with my finances me and my partner could split the costs between us two or the number of partners I have in my business. I could come into disagreement over how the profits will be split between me and my partner and who gets the most control over the sandwich shop. I could also come to a disagreement over how many votes each partner has to make those vital decisions in the sandwich shop, like if I wanted to expand or bring in new products like ice creams. Partnerships often a family business, but divorce or a falling out could lead to the company going bust. Problems will be massive if you do not make a deed of partnership. But if I were to open a sandwich shop and own it my self I would have the benefits of: * Easy to set up ...read more.

Conclusion

Who has put the money into the Sandwich shop (and how much). And what the company does. If I were to be successful in my application for limited liabilities, every year I would have to call an annual general meeting. And every year the people in business house would ask my company to produce an Article of Association in this I would have to state. The voting rights in my company, how the profits will de split in my company, the duties of my directors and finally what is to be done after the Annual General Meeting (how the company is going to go forward). It costs between �50- �150 to become a limited company. Some disadvantages of being a limited company are that: * All documentation must clearly state that you are a limited company (ltd). * And annually you must send the people in business house your audited accounts. Audited means checked by an accountant. And when they go to this house any member of the public can request them. Overall the one I chose in my opinion would suit me an my Sandwich shop the best. ?? ?? ?? ?? ...read more.

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