Business Law in the UK: Legal Business Structures and Recommendations for IOM Solutions

This report discusses the legal business structures in the UK, including sole trader, general partnership, partnership, and limited liability. It also provides recommendations for IOM Solutions. Subject: 4002, Course Name: Business Law, College/University not mentioned.

Business Law

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK...............................................................................................................................................3
Businesses & Organizations in the UK............................................................................................3
The legal business structure of UK companies................................................................................4
Sole Trader.......................................................................................................................................4
General Partnership..........................................................................................................................5
Partnership.......................................................................................................................................6
Limited Liability..............................................................................................................................6
Recommendations for IOM Solutions.............................................................................................7
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Business law is linked with the legislation that shows that how the business are developed and
functioned. All the organisational management have to include themselves in several number of
activities in order to present the regular basis functions of the business with the aim of gaining
effective section of earning. The framework of business will depends on their functions in terms
of the sole proprietorship, corporations and as well as international management (Bouderhem,
2021). As it also engaged with various liabilities through which the business deals to manage
legal term of duties. So, the commercial laws involves several section of legislation that operates
the management from their start to last section. The following report deals with the case of
various sort of the management as with their advantages, disadvantage, legal liabilities and as
well as effective recommendation in context to Sam in the business.
TASK
Businesses & Organizations in the UK
In UK, the basic section that manages the business of the Company Act of 2006. On the
other side, the business also need to manage there provision of employment laws and contract
laws as appropriately and effectively. It is a basic criteria field of the success of the management.
It will depends on their sections and manner of business with several rights that covers separate
legal entity, common seal and right to sue and to be sued. It also engage the framework of non-
disclosure dealing and letter of intent and many other. The employment laws also functioned
with the leaders and as well as employees for legal commitment of any ineffectual act on their
division as against to the management or any other person. So, the business can also made
effective and efficient strategies as if one gets fail to follow their roles and duties as per to the
norms and laws then such strategies will presented in the legislation act. The directors are the
person who are responsible for the managerial actions and for presenting the activities of the
business by following liabilities on section of them due to higher term of agreement of certain
orientated duties (Crow, 2021). As they required to take effective measures to evaluates their
situations of the management at the time of authorized section. But it also include the case in the
directors that will evaluates the personal capacity. As it also engages the case in that, the
directors of business will presented some issues and being liable by any other commissioned
directors in that one can be asked to develop certain compensation for the future loss. It will also

linked with the act that can be presented in the management in an ineffectual position. Generally,
for the partnership firm, the dealing among the partners can be termed to be unproductive by the
provisions of the partnership act, 1890. The two basic section of the document that are required
by each organisation will be Memorandum of Association and Article of Association. It will help
in managing business, that how they need to make future strategies in order to overcome barriers.
It also relates with the memorandum of business in that it need to be signed by their shareholders
at the time of incorporation (Crow, 2021). So, Article of association is a written agreement in
that laws and rules are agreed by their executives and shareholders for following the operations
and functions of business.
The legal business structure of UK companies
It include various sort of the managerial structure in which they operates as per to their
benefits and drawbacks. So, in order to know about the effective options management need to
present suitable tactics to maintain their structure. Moreover, Sam require to extend their
business in the field in that they operated since past eight years. In the structure of business in
which they are managing as a sole trader will be the person who need to satisfy customers by
fulfilling their desires by themselves. But now they are efficiently interested in maintaining terms
of choices that are approachable to set suitable business structure for their business in selling
electrical parts. As there are various benefits and drawbacks in terms of the market field that are
as follows -
Sole Trader
In this section it will linked with the sole proprietorship that are termed to be as one of an
efficient way to start the business by proprietors. On the other side, it follows lower formalities
in manner of incorporation, administration and dissipated terms. The person who operates such
businesses will termed to be a proprietor or owner of the structure who have separate legal entity
with high term of proficiency and liabilities (Dewi, and Sylviana, 2021). It involves benefits by
having field of business that are efficiently predominant in the country by their effective working
and beneficially divisions of their individuals. As there are several number of advantages in
which some are related to have global control on business and that means the proprietor have
rights to develop profit by themselves. The fundamental terms of privacy will relates with the
issues that are predominant in several forms of structure that will not raise with the owners. On

the other side, consolidation of such sort of business will linked to divisions that will not require
any further enrolment. Business structure follows suitable disadvantage in relation of the
liabilities of their own that they have to bear. As also the external loss that will have to bear by
single person will linked with their banking and financial risk that might rise. Basically to other
things that lies with certain legal implications will need to deal in terms of taxes such as
corporate and as well as income tax that are required to be paid by their proprietors themselves
on regular basis out of their earning (Mahmudah, and et.al., 2021). Also in order to acquire the
data of their customer that they need to continue their general term of data protection rules. Such
norms lies within the certain penalties if one fails to maintain them. By it, the national data
protection act will apply in order to overcome any legal impact by storing effective self-
assessment of the tax return on time.
General Partnership
In this level, business manage two or more person to deal to coordinate with their
resources in order to create a business with the motive of earning of proficiencies in
management. In UK, such sort of most prevailing terms that are the individuals who involved in
the personal business of the business that engages the task of taking critical decisions that are
supported as the associates who perform work with their co-associates for the business. General
partnership is one of the framework of the partnership model in that the operations involves in
partnership. The process of incorporation is efficient and low cost. In it, this will linked to the
partners effectively to manage their duties and laws together in proportion and that also share
their profitability and losses in the same proportion. So, after it, the profitability of the associates
who also holds the authorized division to import the labour assets, investment and skills to the
business (McGregor, and Ingram, 2021). Out of some section of the benefits, one will get similar
term of the share of the profitability at the time of sharing the liabilities. Furthermore, the legal
implication of such sections are arranged as according to the present legislation of partnership
that are not termed as separate legal entity other than their owner. By this, the partners are bound
to pay their section of taxes as according to profitability that have been acquired out of the total
share of earning of the management. As the taxes on the global income are to be paid
individually on the term of the business itself.

Partnership
When two or more individuals are manage with each other it will come within this
manner to share the earning and liabilities that are related to be formed as a partnership. The
basic characteristics that are required for the development of several section of partnership with
the suitable division of partnership deed among the partners with the same level in that the
profitability and liabilities are to be hold (Nwafor, and Edeh, 2021). As it shows the liberty on
the section to present the transactions of the business by anybody of them. The accessibility of
number of individuals is a crucial way at many time that can be proved to be both advantageous
and as well as a disadvantage. It include positive aspects that provide larger number of network
cause that are being followed with various proprietors. So, the negative section in that the
individuals tends to loose the direct and global control of the business and cause behind the
division of wider terms.
Efficiently, maintaining about the lawful implications, the individuals are not bounded to pay the
taxes on the total income that have been developed out by partnership manner. Instead of each
individual who are require to pay the same section of their part of earning. Hence, as according to
the losses and profit of the individuals who are managed back in the individuals partnership in
tax return.
Limited Liability
As it is also suggested that the liabilities of the individuals of the limited liabilities
management are categorised to the way of number by their identity. So, the share not issues in
the field of the marketplace that are for the general public instead of holding from other sections.
The organisation and their workers operate as per to their capabilities of having separate legal
entity that can also be one of their advantages of their divisions (Sadkov, Kvitsinia, and
Sandalova, 2021). It also present that there is no important requirements of low capital to manage
with the business as according to their decision making sections and requirements of business in
an efficient way. Drawbacks can be linked with the settled terms of shareholders that is half in
most of the scenario and limitation on the issues of managerial divisions to the general
individuals.
As according to the previous section, this will enlisted to the status of separate legal entity that
outcome to the point that the liabilities of their social unit are limited to the share of their
financial capital even by the capital that are accountable for higher section. Also the associates

are not create personal section for the losses or the faults that have been committed with other
workers. Generally for the way of negligence and criminal offense the other will not develop co -
subordinate who are responsible as with another (Skauradszun, 2021). It is also follows the way
of the structure of joint liabilities in such division.
Recommendations for IOM Solutions
It involves several term of division that follows an efficient manner for Sam as per to
demonstrates the case of the Limited liabilities partnership in the field of business. After
evaluating all the above discussed elements, there are various forms that can be founded that the
manner that Sam is looking for there divisions in the form of Limited liabilities partnership. On
the other side, there are various manner for measuring the divisions to expand their functions in
organisation at the time of ensuring high security (Yeoh, 2021).
CONCLUSION
From the above mentioned report it has been concluded that, the way of legislation that will
follows the manner of several organisation in the Company act of 2006. It also support in terms
of all aspects that engage the formation and dissolution of the organisation. It also involves the
advantages and as well as disadvantages of all structural concept as will present with legal term
of implication. So, it defines most suitable choices that are available in the manner of Sam for
their organisation as according to their needs of the limited liabilities partnership that include
higher number of workers who support them in managing their sections.

REFERENCES
Books and Journals
Bouderhem, R., 2021. Groups of Companies in European Comparative Law. European Business
Law Review, 32(2).
Crow, K., 2021. International Corporate Personhood: Business and the Bodyless in International
Law. Routledge.
Dewi, S.R. and Sylviana, T.A., 2021, May. Determinants of Accounting Students’ Perceptions of
Ethics on Tax Evasion. In 2nd International Conference on Business and Management
of Technology (ICONBMT 2020) (pp. 202-207). Atlantis Press.
Mahmudah, S., and et.al., 2021. Debt Settlement through the Client of the Existence of Limited
Partnership Business Entity as a Non-Legal Business Agency in Indonesia. Journal of
Environmental Treatment Techniques, 9(2), pp.416-420.
McGregor, C. and Ingram, L., 2021. Empathy and complexity–navigating the waters of business
and law. Modern Lawyer, 4(4), pp.28-31.
Nwafor, M.G. and Edeh, K.N., 2021. The Legal Measures for Promotion and Protection of
Investments in Nigeria. Business Law Review, 42(1).
Sadkov, A., Kvitsinia, N. and Sandalova, V., 2021. The phenomenon of digitalization of the legal
business education. In SHS Web of Conferences (Vol. 109, p. 01035). EDP Sciences.
Skauradszun, D., 2021. Restructuring Companies During and After the Covid-19 Pandemic: A
Law & Economics Approach. Nottingham Insolvency and Business Law eJournal
(NIBLeJ).
Yeoh, P., 2021. Post-brexit Deal: The New Normal for the UK?. Business Law Review, 42(2).