UGB 110 Business Law: A Critical Evaluation of Business Structures

This essay provides a comprehensive analysis of the key differences between unincorporated and incorporated businesses. Unincorporated businesses, such as sole proprietorships and partnerships, lack a separate legal identity from their owners, leading to personal liability for business debts and obligations. These businesses often have simpler formation processes and fewer regulatory requirements. Incorporated businesses, on the other hand, are legally recognized entities separate from their owners, offering limited liability and potential tax advantages. The essay discusses the characteristics, advantages, and disadvantages of both types of business structures, highlighting the importance of understanding these differences for legal and operational considerations. The document is available on Desklib, a platform offering a range of study tools and solved assignments for students.

UGB 110 Bussines
Law Q1 Key
differences between
unincorporated
andincorporated
businesses

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business is the corporation and the entity which helps out to maintain the growth and the
advancements of the individuals by practising profitability for the individual growth and the
current market conditions. It provides the methods through which the market and the growth can
be maintained as it helps out to maintain the advancements for the future goals and the programs.
Business are mainly of unincorporated and incorporated, in which the unincorporated are all such
organisational practises in which the business practises are not being legally registered. It use to
have its own perpetual legally existence. Whereas incorporated business are legally recognised
companies which use to deal with all the separate legal entity and also provides the major state
incorporation and function (Simon, and Way, 2021). This essay will cover all the major
difference between the unincorporated and the incorporated business practises.
MAIN BODY
The major differences between the unincorporated and incorporated business is that all
the incorporated business practises use to cover important areas through which they maintain the
separate legal entity and in all the unincorporated business they use to bear all the liabilities for
there own welfare and record as this helps out to provide the major alembic differences through
which the companies can tend to maintain all the natural and the differential aspects in the
organisations. All such carries major difference as in all the sole trader and the legal entity and
the other use to maintain the all the responsibility on there shoulders.
Unincorporated companies are all complex companies which use to maintain all the
practises in the business and it is included within all the legal entity and functions. It is not a
formal status of all the corporate areas. It includes majorly limited liability partnership, limited
partnerships and many more. It generally cover out different partnership firms which use to
include all the major registered areas through which the banking in all the business segments can
also be included. This use to consider all the privately dealing companies that are being handled
by the private or the single individual (Tran, and et. al., 2020). All such major providers that are
being needed in it are generally the owner use to handle all the major areas and the working
through which the companies can there by attain the functioning and there complex methods and
the functions. Example for all such unincorporated business are Limited partnership (LPs),

Limited liability partnerships, sole traders etc. The major characteristics of unincorporated
business are all the capital owner use to provide the funds in order to run the proper funds and
they can even lend the money by borrowing through all the family and friends. All such business
are not being generally registered in the company house. The management in all such business
practises are easy as there is no one implement difficult proceeding and the method for the
company (Bloch, and Lamoreaux, 2017). It usually have the small sizes of companies and the
working. It use to maintain all the information to be framed in the secretive manner as the person
is there by handle all the information in there own way it use to maintain the nature and the
record through which all the changes through which company can there by implement the
documents and the record through all the effective manners. It helps out to implement all then
planning and the nature in order to frame the general characterisation and the all the records and
the documents that are being related to the business are being kept in private. The major
advantages of unincorporated business are like, it is the simple process of business formation
and it involves major accountability through which they can maintain all the all the agreement in
an easy manner without any issues. This helps out to frame the values and the nature through
which work can be implemented. There is no requirements of any kind of registration process
and that tends to be easy and simple. One of the major advantages are that there is low cost
required for all such business practises and it helps out to maintain the easy and smooth with low
costing process(Garbellini, 2020). There will not be any kind of filing and it use to be
maintained all the privacy measures and the information is being encrypted and framed. All the
generalise accounts are being adapted in it. All theses types of companies use to maintain the
social welfares through which the companies can be regulated and all the function and the
incorporation of the business can be framed. The major drawbacks or the disadvantages of all
such business are like, when there arises all such situation in which the they have to deal with all
the obligations as in order to perform all the functioning in such practises the business are not
being involved. Secondly, there will not be given any right to the individuals and all the assets
and the investment is to deal with the trustees rights and functioning (Johnson, 2018). Their is
no framing of the legal contract and in case of dependency and framing it will considers out to
requite the major areas and the functioning through which no legal framing of the contract can be
maintained. Winding up cannot be made on the voluntary process as all the company will have to

deal with the basis general analysis and functions as there is no process of liquidation that is
being implemented in it.
Thus, Unincorporated business use to carry put all the methods and the working in which
no taxation in personal level for the partners and all the sole traders are being made, and all the
income that is being received by general adherence will not be taken in the record and are kept
for the applicability with followed up functions. In all such business their has been seen that all
the external liability for the business is being adapted and it use to maintain the fiduciary relation
with each other as mostly these business use to be carried out by the partners who have the
efficient and the same practises in the business. These types of companies use to deal with all the
organisational areas and maintenance with the partners right and the potential in order to
maintain the alleged working of the company(Yalaman, and Yıldırım, 2019).
Incorporated Business are all such legally framed business practises which use to
maintain all the legal process in order to maintain the corporate functioning of the business
handling. This use to have the proper legal entity in order to maintain all the separate firm assets
and the functioning through which they can handle the major compliances. These are generally
the major formed business practises which use to include all the corporate entity that are distinct
from their owners. Incorporated organisations are generally all the formally organised business
practises which use to carry out the proper existence wiry the registration and the implication of
major areas of working. It use to involves all the documentation and the working through which
the companies can there by being framed. It involves detailed registrations and also considers
documentations which are like the article of incorporations that involves the shareholders in the
business practises (Fossen, and et. al., 2020). The major asset and the cash flow between the
business practises are generally being opted as the separate framework of organisation. And all
the investors and the owners are generally being linked to each other with there major
differences and the limited liability. All the incorporated business use to require the article of
incorporation with full details regarding the shareholders and the investors in the business
practises. The registration is being done with all the legal implications that are being considered
as the major framework and responsibility.
It used to focus on creating the large business and all the corporation use to require the
large amount of sum through which they maintain the business structures and also analyse to
expand the business with the help of shareholders. They not only focus on all the single

individual being practising the working culture but other then that it use to implement all the
strategies through which the implementation and the working can be turned out to gain the
maximum profit for the companies. They use to provide the benefit to all the sole proprietor and
even in the partnership through which the maximum benefit can be given to all the companies
and the consumers. As it focus on maximizing all the growth and the establishment of the
organisation and also tend to provide the major role and the implication in performance of
different duties and the functions(Akbar, 2019). These kind of business also helps out in
maintaining the raising of the capitals and the shares and also implement the corporate structure
and the practises. All such kind of business use to carry out several importance and the working
through which they can implement the strategy to outline the nature and the process of working.
The major characteristics of the incorporated business practises are like, It use to focus
on the social responsibility as they tend to maintain different welfare programs through which
the company can thereby promotes the growth and the success with the help of providing
maximum benefits to the companies and the individuals being working in it. And also to all the
communities which are in need for all such achievements. There main agenda is to maintain the
growth and to increase the profitable the companies with the help of shareholders and also by
maintaining the additional investment functions. As incorporation use to provide all the
responsibility through which they can attain the growth and the focused production.
Incorporation use to focus on the permanent business practise as it use to provide a longer stay in
all the corporation. It use to maintain proper procedures and the policies through which they can
implicate all easy and smoother functioning and also creates a major responsibility by following
the organizational structure. Advantages of incorporated business are like, Limited Liability as
in it all the major liability on any kind of default lies on the companies and the associations and
the owners are being protected from all such liabilities which can affect there major business
practises (Lee, and Eesley, 2017). Which means that all the personal finances of the owner is
being protected and they were being responsible for all the major functioning. It use to carry out
unlimited lifespan which means that they deal with all the functioning and working for longer
period. As even when the director or the head of the company changes there will always remain
the existence of the business without any issue. This use to provide flexible earning in which all
the major working the corporation is being laid on ad it determines the major affect and the
incorporate areas. It has the major capacity to raise the finance and can deal with separate legal

property for their own benefits. It use to carry out major responsibilities through which they can
implicate all the major requirements and also lead to frame all the documentation through which
their can not be any kind of fraud which can be made. It helps out in incorporating all the
function of the tax returns and also towards maintenance of the taxes and there varies areas. It
focus on the business evolution and also in the credit of business through which all the credit
history can be maintained (Skrzek-Lubasińska, and Szaban, 2019). Disadvantages of
incorporated business are all such business practises are mostly expensive as they use to require
complex and varied structure s through which they tend to form and need much expenses as high
fees is being required for all the setup cost and with that on all the general legal expenses,
accounting and state fees. Secondly, double taxation id the major drawback of all such business
as it implicates corporations to pay general annual earnings and with that double taxation is
being required for generating the income. Thirdly, there is too much of paperwork which is being
needed for the incorporation business practises as it directs and maintains all the general meeting
and the expenses through which activities can be framed. Lastly, it has a difficult dissolution
procedure as its perpetual succession is being maintained and which creates the major issues in
assembling all the winding up to be drawback of the company.
Difference between the unincorporated and incorporated business is, majorly on
different groups and methods like, Liability and risk in the unincorporated all the members are
being liable for the debts and the actions and the individuals use to meet all the general liabilities
as according to the legal action which are implied in it. Whereas, in incorporated the liability of
the individual is limited as they use to divide all the risk in various individual and which
implement and divide the risk among all. Ownership unincorporated business cannot be carried
out in any property that use to be laid for their own benefits, as they use to frame the contract
that is being made for their own functioning. And on account of incorporated property all the
liabilities and the control use to be lie on the individuals and on their own (Davies, and Duff,
2019). Cost the major cost or the price of the unincorporated business is mainly low on account
of start up cost, whereas in all the incorporated business the major changes and the cost is being
framed and differentiated according to the structures and formation. Regulation in all the
unincorporated business are not being regulated by any kind of legal bodies and the
governmental control as they use to be framed and legalised by the methods and the working
procedure of there own. There is no any other type of control that use to lie on different areas and

the imparted nature and working. Incorporated use to carry out proper function through the
regulations and the laws that are beiong imposed by the companies act or through the norms and
the rules which are being made for the benefits of the individuals. It implicates to serve for the
benefit and for adversing the actual condition of the company (Flögel, and Gärtner, 2018). The
individuals will have to follow all the strict guidelines and the formalities related to the benefit of
the company. Legal Personality, as it unincorporated use to deal with all the sole traders and the
partners with the legal entity being made within them and on the other hand incorporated
business use to authorize by the legal owners and the responsibilities are being laid on the
owners of the company. Continuity, The unincorporated business use to provide and can be
ceased on any of the separate entity being undertaken and also on the responsibility through
which they can implicate to maintain all the scenarios. As all such business can at any time be
ceased due to the issues or the obligations. Risk all the unincorporated use to have major
financial and the legal risk as in all those cases where the company has maintained or is in any
kind of loss then they will have to bear it personally. Which means that all the major issues and
the requirements are being covered in it and the individuals use to maintain all such nature and
the issues that the companies use to face. And on the other hand all the risk and the major issues
regarding the working lies on the company and the business debts in the incorporated business. It
use to focus on the personal wealth and the major areas through which they can maintain the
lowering of risk from themselves. Brand perceptions use to have all the major requirements as in
Incorporated business all the companies use to help out the smaller segments and the markets
along with that there is being maintained all the investors and the finances to be on bigger level.
Through all such incorporation and maintenance. In unincorporated use to maintain the general
terms and it does not have any kind of legal and the protection being given to nay other business
practises and terms(Blume-Kohout, 2017).
Thus, both the unincorporated and the incorporated business use to carry out different
responsibilities and it helps out to maintain all the nature as it have major difference in there
working, responsibilities, liabilities and the nature which is being required in it.

CONCLUSION
From this above essay it is concluded that, Business is the most important entity which
helps out to promote the growth and the welfare of the society and the community as it helps out
to maintain the generation of the profitability for the future goals and programs. Both
unincorporated and incorporated business use to have major differences as one is separate legal
entity and the other is mainly the expanded business elements. On the other hand there finances,
risk bearing, assets, continuity all are differentiated according to the general terms. They serves
out to provide major advantages and drawbacks through which companies can be implemented
and maintained. All such helps out for future generation and programs and also opt out to
maintain all the necessary requirements through which they can ambit their goals and the
functioning in smoother manner.

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