Legal Business Structure of UK Companies and Recommendation for IOM Solution

Business Law

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
The legal Business Structure of UK Companies ........................................................................4
Sole Trader .................................................................................................................................5
General Partnership ....................................................................................................................5
Limited Liability Partnership .....................................................................................................6
Limited Liability Company ........................................................................................................6
RECOMMENDATION FOR IOM SOLUTION........................................................................6
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
A business may be defined as an tangible entity which engage in many activities such as
commercial, professional and industrial with an aim to earn profit by offering products and
services to the customers. Every businessman wants to maximise its profit make a favourable
position in the market among its competitors. Business deals in marketplace in which new
business entities emerge and some collapse due to various factors. It facilitates in monetization
by exchanging the goods and services. The new entrepreneur seeks the opportunity in start up
business in order to make their life secure and better. People sets up their business entity based
on the availability of capital which defines the nature, type and structure of business such as
small, medium or large enterprise setup (Zallaghi, 2017). In order to understand the different
legal business structure, business laws plays an important role by providing several guidelines
and limitations in UK. This report will cover various business structures along with their
advantages and disadvantages. It also includes recommendation for Sam so that it may provide
with suitable business expansion for IOM Solutions.
TASK
The government of UK has formulated several rules and regulations for the operations of
business. The business is carried out in UK is according to companies Act 2006. It defines all the
provisions that must be considered in order to function the business activities effectively and
smoothly. Employees are the assets of the company and their absence may collapse the business
(Solomon, 2017). There are various legislations that has passed for the employee behaviours that
provides with the provision of standards and their action. Company laws have some sections that
defines the liabilities of the companies that arise by not fulfilling the obligations. While
introducing a new business in market, it has provided as a professional identity and further with
certain identity such as common seal, artificial company or perpetual existence which consist of
rights and responsibility of suing someone or be sues by someone for non compliance of the laws
which are formulated by government. Various agreements are made at the time of
commencement of a new business under different heads and sections that makes differ from one
another like sale agreement or purchase agreement or any other agreemental deed.
Liabilities can be arise due to
the inability to carry out business operations and unprofessional manner of workforce. The