Which Business Structure Do You Choose?
September 30th, 2008 by admin
If you are looking to go into business for yourself, one of the first decisions you will be making is the business structure to be used. There are two main ways in structure when broken down. There is personal liability and there is company liability. Sole Traders and Partnerships fall into the personal liability sector. Businesses that have undergone Company Formation are in the company liability sector. So what is the difference? A Company Formation protects you and the investments into the company. When you are operating as a Sole Trader or Partnership, you open yourself up to litigation that will be brought upon you personally, even if it was faulted on the businesses behalf. It is best to always protect, and a Company Formation can do just that.