●    It is important to recognize the distinct features between the five main forms of business organization (sole trader, simple partnership, limited liability partnership, private limited company, and public limited company).

●    Sole trader organizations are very flexible but expose the owner to unlimited liability for losses, whilst operating a limited company limits potential losses of the shareholders but is subject to external regulation.

●    There is no legal distinction between an individual trading as a sole trader and their business, but a limited company possesses its own legal personality irrespective of the members/directors who carry out its functions.

●    A partnership can be ‘simple’, ‘limited’, or a ‘limited liability partnership’.

●    While partners generally have the right to participate in the management of the firm, shareholders of a limited company are not automatically allowed to take a part in its management.

●    Private limited companies are not required to have a minimum share capital, but public limited companies require a minimum of £50,000 allotted share capital on registration.