BESY - Entity Flashcards
Entity concept
Separate entity concepts
Separate bank accounts
Profit making business entities
Sole trader -> Owner/Operated by 1 person.
Partnership -> Owner/Operated by 2 or more people.
Company -> Owned by shareholders, Run by directors
Sole Trader
Simplest form of business
Can employ people
Fully personally liable for losses and liabilities
Business
Jointly owned by partners
Separately liable for their share of losses & liabilities
Companies
Owned by shareholders
Unlimited number of shareholders
Directors runs the business
Almost always have limited liabilities
Shareholders are safe
Separate legal entity (People in their own right)
Non-profit making entities
Charity
Clubs & Societies
Government organisations
Business entity taxes
Sole Trader - Income tax, VAT & NIC
Partnership - Income tax, VAT & NIC
Company - Corporation tax, VAT & NIC
Sole trader - Records of business
Sales and income
Expenses
VAT
PAYE deducted from employee’s salary
Company - Statutory registers
Members
Directors & secretory
Charges
PSC
Company - Confirmation statement
No more than 12 months can pass between each statement
Address of registered office
Type of company
Principle of business
Officers details
Issued shares & holders
Retired members
Company - Accounting records
Money received and spend
Record of assets and liabilities
Statement of stocks (Inventory record)
Company - Annual accounts
Balance sheet and P&L
Directors reports inc. Developments and Dividends
Business info - Start business
Sole trader
No formality
Just start
HMRC registration for self assessment
Business info - Start business
Partnership
No formality
Partnership agreement
HMRC registration for self assessment
Business info - Start business
Company
Formal registration
Memorandum of association
Application of registration
Statement of capital
Statement of consent to act.
Statement of compliance
-> Pay registration fee
-> Once formed -> Incorporated
-> Register for corporation tax
