- Public Limited Company
A public limited company’s are usually a famous brand. For example JD sports and there income everyday is shown in most tabloids and business papers. A ‘PLC’ must have more than £50,000 paid up share capital before the business can be started. The advantages of a Public Limited Company are that
- You a can get profit by selling shares to the public
- The company will be big so it will be easier to negotiate with suppliers
- Other share holders have limited liability
- You can employ specialised people for the job
- Deaths or illnesses do not effect the company
- It can be easier to borrow money
But there are also disadvantages. Because there can be a huge amount of changes to the company like
- There can be a big investment into the business and can take over
- Everybody’s account is not private
- It is very expensive to set up
- Unlimited liability (except sleeping partners)
- Private limited company
A private limited Company is a business that is at least owned by 2 shareholders. Shares can be sold privately to friends and family who invest money into the business they receive dividends. Dividends is like a slot machine the money that you put in you will not always get it back, but if you have chosen wisely you will get more out than you put in. Advantages of a PLC are: