Business Law Report: Legal Structure Recommendations for IOM Solutions

This report delves into the realm of business law, specifically examining the legal structures pertinent to businesses operating in the UK, with a focus on providing recommendations for IOM Solutions. The report commences with an introduction to business law, emphasizing its significance in governing commercial transactions and the nature of business liabilities, including negligence and vicarious liability. The main body of the report then explores the operational aspects of IOM Solutions, emphasizing the importance of legal regulations such as self-assessment registration, business name selection, record-keeping, and compliance with employment and equality acts. A detailed analysis of various legal structures, including sole trader, general partnership, partnership, and limited liability, is presented, outlining their advantages and disadvantages. The report then provides specific recommendations for IOM Solutions, suggesting the selection of a limited liability company structure, highlighting its benefits in terms of limited liability and flexibility. The report concludes by summarizing the key findings and emphasizing the importance of selecting the appropriate legal structure for business success.

Business law

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Businesses & organizations in the UK........................................................................................3
Legal structure of UK companies................................................................................................4
Recommendations for IOM Solutions.........................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business law also is considered to be the commercial law that is helpful for the body
rules that is essential for the conventional, agreement or national international legislation,
governing dealing between the persons in the commercial matters. The explanation of the
sources of the law business which is essential for the transaction for the nature and management
of a company for the concept of the business liability in the negligence. The vicarious liability of
an employer that is essential for the individual employment.
MAIN BODY
Businesses & organizations in the UK
The nature of the management of the organization sole trader company called IOM
solutions revolves on the operations that are centred around the ways in which the entrepreneur
is running he organization. In the last two years the business has been able gain the growth in the
long term demand of the employees. The focus of this organization is towards the ways in which
the business has been able to decide the expansion of the number of opportunities that help in the
deciding the expansion of the business.
The legal regulations for IOM solutions has to keep under consideration are,
 Registering for the self assessment which is for making it eligible for paying tax.
 Selection of the business name is considered to be the one responsibility that affects the
overall selection of name that influences the factors that is effective towards the
contribution of the ways in which they get in trouble (O'Brien, Powers and Wesner,
2018).
 Keeping the records of the business in the sales is also considered to be the key factor
that influences the sales of the organization for dealing with the wealth for the feature of
the business.
 Employment Rights Act 1996 as per this law the business has to thing about the rights
of the employees that are mentioned in this law for the organization.

 Equality Act 2010 this law represents the level of equality that the business has to
maintain the equality of the organization which is the very effective (Test, 2021).
 Health and Safety at Work Act 1974 the development of the health and safety of the
organization is also considered to be the factor that is very important for being considered
for the employees that are hired in the organization.
 Trade Union and Labour Relations Act 1992, this law suggest that the employees have
the rights to from union.
Business liability in the negligence is considered to be the reason due to which the
business has been able to gain the success that is required. Memorandum of association is also
considered to be the key factor that the legal document for the specific that the scope of the
business activities is to help the company gather the information that is useful for its
shareholders of the company (Flint, 2020). Articles of Association is considered to be the
document that is able to specify the regulation for the company's operations and defines the
company's purpose.
Legal structure of UK companies
Sole Trader
The sole proprietorship is the simplest business form which has been considered to be
operated by the one that have created the business. It is considered to be the legal entity that is
simply refers to the person which owns the business and is personally responsible for the debts of
the organization.
The sole proprietor is the personally liable for all the debts of the business which is
essential for the examination of the how to closely learn the potential liability of alarming the
ways in which the sole proprietor can borrow money for the operations of the business and its
loses for the customers.
Advantages of having a sole proprietorship business are,
 Owners are easily able to establish a sole proprietorship through instantly and cost
effectively.
 Sole proprietorship has the ability to be able to carry the ongoing formalities
 Sole proprietor does not need to pay unemployment tax on the himself as they are not
unemployment tax on employees.
 Owners may freely be able to analyse the mix of the business for the personal assets.

Disadvantages of sole proprietorships include,
 Owners are the subject to the unlimited personal liability for the debts, losses and also the
liabilities for the business.
 Owners cannot raise capital by selling an interest in the business.
 It can be considered to be the factor that is able to help the business survive the death or
incapacity of their owners and understand the ways in which they are going to help in the
retail value.
General Partnership
General partnership is the business arrangement in which the two or more individuals are
able to agree with the assets profits, and financial and legal liabilities of jointly owned business.
This is also considered to be the business in which the general partnership, or the partners agree
for the unlimited liability meaning the liabilities which are not capped or can be paid through the
owner’s.
This is also considered to be the factor that is able to gather the partnership that is able to
develop the flexibility to the structure in the business for the ways in which they are able to
control over the operations. It is also considered to be the essential for more swift development
of the business management.
The benefits of the general partnership business are,
 The cost of creating new business is considered to be very effective for being able to
achieve the success that is required.
 It is considered that the liability of the business is divided into the individuals for being
able to achieve the success that is required.
 There is always a lack of proper partnership that is essential for the generation fo the
ways in which the business would be able to perform.
The disadvantages of the general partnership business are,
 The main disadvantage of the partners for in this form of legal structure is that the
business has unlimited debts.
 Each of the partner in the general partnership has been considered to be the able to join
ad serve the liability of the partnerships debts that is essential for the partners to maintain
the liability for the share of partnership debts as well as being liable for the debts.

 \In the general partnership there are risk for the development of risk which is the due to
the increased level of friction among the partners and management.
Partnership
Partnership is the involvement of the two of more individuals that agree to share the
profit or losses of the business. It can be considered to be the sharing of risks, costs, benefits and
responsibilities of running an organization. Partnership are also referred for the incorporation of
the entities which are considered to be self-employed for the personally responsible losses and
debts that the business has been undertaking. In this legal structure the partners is also considered
to be responsible for the ways in which the other partners are eligible for the misconduct which
takes in the organization. The profits and the losses of the organization are said to be shared
between the partners it will also be considered to be the ratio that also reflects the investments
made by the organization.
The benefits of the partnership business are,
 Business is able to generate more capital from the different partners.
 There is opportunity for income splitting which is an important factor for saving taxes.
 The establishment of the business is easier as it reduces the start-up costs.
The disadvantages of partnership are,
 Each partner is an agent of the partnership and is liable for the action of other partners as
well.
 Partners joining or leaving increases the changes of valuation of the assets which can be
costly for the partners.
 The liability of the partners in the partnership is also unlimited.
Limited Liability
The Limited liability is considered to be very similar to partnership that is essential for
the expectations of the limited liability for the amount of money which is invested in the
organization. It is also considered to be the factor that is essential for the business to share
responsibilities for the personal assessment of the organization. It has the legal structure in which
the members of the personal self-assessment tax return are every year factor. The liability of the
shareholders in this company is considered to be limited which is the reason why the profits are
set out in an LLP agreement and all the members submit. There is not limited to the maximum

number of the members of the limited liability company which is able to influences the
advantages and disadvantages of the limited liability company for the increased level of depth for
the organization.
Following are the advantages of the limited liability legal structure,
 Tax advantages of the company has been considered to be the factor that is said to be the
threat to the limited liability company which is related to the income of the members of
owners. It is also considered to be the case of income for the business that is able to help
the organization rate the hands of the shareholders and their personal taxes (Begum,
2020).
 Flexibility of income distribution which is considered to be the factor that is able to
influence the terms of the distribution for the profits and business so that the ratio of the
partners and their capital distribution.
 Simplicity is another advantage for the organization which has been considered to be the
factor that is able to run operating agreement. In this legal structure meetings are held for
the fulfilling the formality of shareholders.
The disadvantages of the limited liability company are as follows,
 For this organization it is very difficult task to be able to raise the capital that is required
for the achievement of the goals that are necessary.
 The limited liability company has been raised as the state for the organization to be able
to be able to generate te growth that is able to generate the growth that is able to
influences.
 Due to increase in the limited liabilities of the companies the agencies and also influences
the practices that involve the business and the ways in which it is able influences the
different complexities in order to understand the requirements of the business (Taylor,
2021).
Recommendations for IOM Solutions
IOM solutions that is an organization that has recently started to increase its employee
capacity needs to selected the perfect legal structure for being able to achieve the targets that are
necessary.
 Out of all the options available for this organization the best form of legal structure is
going to be limited liability company.

 This is due to the different factors that it is going to offer towards the sole
proprietorship (Advantages and Disadvantages of Limited Liability Company ,
2021).
 It has been found that the members of the organization will have to ownership if they
will have the shares purchased.
 This legal structure will allow the owners to have limited liability for their company.
 The profit and losses of the company is the members of the taxed individuals that
help in the allowing the business to help in the unlimited numbers of members.
 The focus of the organization has to be on the ways in which each members of the
organization is going to be influenced by the operations.
CONCLUSION
From this project it can be concluded that for IOM solutions Sam would need to selected
Limited liability company as it legal structure for being able to take the mot advantages as per
the requirements. This project has been able to describe the four different basic legal structures
which could have been the option for this business. Recommendations were made to IOM
solution to why selection of Limited liability company would be the key towards the success of
the organization.

REFERENCES
Books and Journals
O'Brien, C .N., Powers, R. E. and Wesner, T. L., 2018. Benchmarking and accreditation goals
support the value of an undergraduate business law core course. J. Legal Stud. Educ..
35. p.171.
Test, R., 2021. An Unwelcome Development in the UK Corporate. BUSINESS LAW
INTERNATIONAL. 22(2).
Flint, D., 2020. Is the UK Adequate?. Business Law Review. 41(6).
Begum, A., 2020. Corruption in business: A critical appraisal of the Australian regulatory regime
in the light of the UK Bribery Act 2010. Journal of Financial Crime. 27(3). pp.735-754.
Taylor, A., 2021. Art Law and the Business of Art. By Martin Wilson.[Cheltenham, UK: Edward
Elgar Publishing, 2019. xxxvi+ 456 pp. Hardback£ 115.00. ISBN 978-1-78897-987-0.].
The Cambridge Law Journal. 80(2). pp.420-423.
Online
Advantages and Disadvantages of Limited Liability Company , 2021[Online]. Available through:
< https://efinancemanagement.com/financial-accounting/advantages-disadvantages-limited-
liability-company >