Professional & Contextual Studies
“A group of people get together and exist as an institution that we call a company so they are able to accomplish something collectively that they could not accomplish separately.” 1.
1. David Packard, Co-founder, Hewlett Packard)
During my further research to support class learning I have used the Business Link resource as a key ‘framework’ and guide map to follow as they focus on the most relevant and significant legislation and dilute the legalalities into key points that are understood by the layperson.
I've compiled a snap shot of these for the purpose of the blog.
Any creative enterprise can be set up using a variety of different legal structures, for example as a self-employed sole trader, a partnership, a limited company, or community interest company etc. Selecting the most appropriate legal structure to support a business objective is an integral part of the business strategy.
There are advantages and disadvantages to all possible legal structures, so choosing the right one for your enterprise depends on the kind of business you want and what kind of success you want to achieve.
Options include: self-employed ‘sole trader’; partnership; private company limited by shares; limited liability partnership; company limited by guarantee without share capital; and a community interest company (CIC).
Options and Consequences
Choosing a particular structure may have short-term benefits but long-term drawbacks, so it’s important to think ahead and take professional advice.
There is rarely a simple ‘right or wrong’ answer.
It’s more a case of understanding all the options and consequences of each legal structure. You will need to assess the extent to which each structure could potentially support or hinder the development of your enterprise in line with your chosen business strategy. A few notes made on the day. Most Relevant to New Media Industry at top.
SOLE TRADER:
Seting Up - Money In Bank 9 6 months finance is usual)
Contracts- Pre-arrnaed contracts to guarantee work
FUNDING – Loans & private investors / Bank overdraft facility / Charge up front to raise the capital
Freelance no registration fees
PARTNERSHIP:
Two or more sole traders working together
LIMITED LIABILITY PARTNERSHIPS LTD
Debt limited to the company
FRANCHISES – License to an existing business
SOCIAL ENTERPRISES
RESOURCE:
RESOURCE:
BUSINESS LINK:
Business Link is government's online resource for businesses.
It has been delivered by Serco on behalf of HM Revenue & Customs since April 2007.
It contains essential information, support and services for you and your business – whether you work for a large organisation or are on your way to starting up.
Simple to use, up to date and practical, Business Link is the first place to go to find guidance on regulations and to access government services. It also has a number of useful online tools, calculators, and best practice case studies; and provides access to funding options, as well as wider support.
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