Business Law United Kingdom Question 2022

Running head : BUSINESS LAW
BUSINESS LAW
Name of the student
Name of the university
Author note

BUSINESS LAW1
Question 1
Unincorporated business are generally partnership or sole proprietor companies.
An unincorporated business has some elasticity when dealing with taxes. An
unincorporated association is the institution that is set up by an arrangement between
the groups of individual who comes together for the cause other than to make profit.
There is no obligation to make registration if an unincorporated association (Miller
2016). The individual members are accountable personally in respect of contractual
obligation and debt. Unincorporated business claimed by the individual termed as
proprietor. The manager do not have distinct legal status from the trade irrespective of
the probability that the commerce enrolled under substitute name than that of proprietor.
The advantages of the unincorporated association are as follows:
 They are easier to set up, founded by the arrangement between the members ,
no further action such as registration are necessary
 In the context of privacy the unincorporated association does not require to file
accounts and other statements registrar of friendly societies or companies house.
 Lower cost of compliance
The disadvantage of an unincorporated business are as follows:

BUSINESS LAW2
 The business does not have limited liability.
 It is not body corporate in addition to that does not have distinct legal entity
from that of individual members
 No statutory liquidation process exist as well as unincorporated business
cannot wound up under Insolvency Act, 1986.
Incorporation of the company in United Kingdom, the owner will be attained from
limited liability. This implies that the owner will be protected to extent from the
liabilities and cost of the company (Triponel and Agapitova 2017). Incorporating a
business establishes new legal entity which is designated as legal personality that
implies the business will be held responsible for its actions can enter into
arrangement and can hire workers amongst other things. The advantages involve
the company is the distinct legal entity and as such legal action or the creditors are
against the company and their assets. The shareholders of the company have
limited liability. The owners of the corporation are not party and as such they are not
accountable directly. The disadvantages involve administrative expense are more
costly with a company than with sole proprietorship or partnership. The
administrative expense involves annual financial information, incorporation cost as
well as annual corporate income tax return.
The limited liability partnership in United Kingdom is regulated by The Limited
Liability Act, 2000. It is the amalgamation of an exclusive partnership with the limited
liability company generally establish by a written LLP arrangement which
particulates how it will be operational and formed. The partners owe duties to act in
good faith and not to make personal profit from the confidence positioned in them.