Legal Business Structures in UK: Sole Proprietorship, Partnership, LLP and LLC

Business
Organizations

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
Business & Organisations in UK................................................................................................3
Legal business structure of companies in UK.............................................................................4
Sole trader...................................................................................................................................4
General Partnership.....................................................................................................................5
Limited Liability Partnership......................................................................................................6
Limited liability company ..........................................................................................................7
Recommendation.........................................................................................................................8
CONCLUSION................................................................................................................................8
References......................................................................................................................................10

INTRODUCTION
There are different types of organisations and all the organisations plays a very important
role in the growth and development of the country by developing different types of employment
opportunities(Cartwright, Davies and Archer-Brown, 2021). These organisations not only
contribute in the economic development of the nation but also provide the valuable goods to the
consumer. The following report is going to discuss about the different type’s organisation in
relation to the given scenario. This report covers the legal structure of sole proprietorship,
partnership and company with their management, taxation, law and dissolution. In the end, this
report give recommendation to SAM to choose a suitable structure which assist in expansion of
the business and earn suitable profit.
TASK
Business & Organisations in UK
Within the United Kingdom, there are different types of business organisation who work
in the various business sector like hospitality, retail, telecommunication and many more. In
relation to the IOM solution information regarding firms in UK has been discussed below: -
Nature and Management of company: -
It has been determined that huge numbers of employees are comprises within the
business management. Each employee has its own duty and responsibility and always work for
the betterment of organisation. Within the management different types of members are included
such as Chief executive officer (CEO) board members, executive and non-executive directors
and many more (Crocco and Chiaudano, 2020). Based on the level of operations and nature of
business structure of the firm is adopted by the company owner. It is being analysed that the
IOM solution operate in the market of UK as a sole trader and operate by a single owner.
Source of laws: -
Different types of laws are followed by the IOM solution manager which assist them in
meeting all the legal constraints in a very efficient manner. In order to run all the operations in a
very effective manner various legislations and compliances like health and safety act 1984,
equality act 2010, employee’s protection act is followed by the business organisation.

Business transactions of company: -
According to the given case study, it has been analysed that IOM solution is a sole
proprietorship and owned by a single owner which deals in the electric parts. They operate their
business at the domestic level and prove their services as well as product to the local garages. In
addition to this, business organisation attains the success over the years in relation to the profits
and employees which give assistance to them to sustain in the market for a long period time.
Duties, role and liabilities of directors: -
The owner of the company is responsible for taking the appropriate decision and the
formulation of the growth policies for the companies. Along with this, director also have to
prepare the annual report as well as the effective business plan for the organisation. The owner
has the right to enjoy all the profits which are earned by the company and also liable to pay off
the debts as well as losses (DINAH, 2020). In addition to this, the owner has the responsibility to
maintain the confidentiality in relation to their data and information in good faith for the success
of firm.
Memorandum of association (MOA) & Article of association (AOA): -
MOA and AOA are being considered as the most important document which are made
during the registration of the firm. MOA is legal document which includes the several
information in relation to the relationship between company and its shareholders, objectives. On
the other hand, AOA is basically a document which specifies the rules for the organisation
operations and define the purpose of firm. Managing the peoples, transactions of company,
process to formulate the strategies and take the decision are comprises under AOA.
Legal business structure of companies in UK
Sole trader
Sole traders is also know as the sole proprietorship which is the simple business structure
as compared to the others form of business. The sole trader is basically a person which run as
well owns the entire business. In this, organisation is controlled by the single person who take all
the decision related to the growth of the firm without any interruption of external parties
(Gebreiter and Hidayah, 2019). Within the UK several business organisations are run by the
individual as a owner with an aim to earn high profits.
Management: -