Vehicles comparison

Question 1

Sole trader, Partnership, LLP, Company

Formation regulations
Legal status
Liability
Termination

Answer 1

Sole trader, Partnership, LLP, Company

Formation: None, Agreement (can be verbal and informal), register with Registrar, register with Registrar
Legal status: Not separate, Not separate, Separate, Separate
Liability: Unlimited, Unlimited, Limited to capital member agrees to contribute, Limited to share capital member agrees to contribute
Termination: When sole trader chooses or is incapable, Strictly when partner gives notice, perpetual session until wound up (member leaving does not cause firm to end), perpetual session until wound up

Question 2

Private company, Public company

Capital 
Directors 
Commencement of business 
Not having s.761
Accounts deadline

Answer 2

Private company, Public company

Capital: No minimum, £50K of which 25% (plus premium) must be paid up
Directors: Minimum 1, Minimum 2 of which cosec can be 1
Commencement of business: Can trade as soon as incorporated, Plc needs a s.761 registrar’s trading certificate (requires share cap minimum and details on preliminary expenses and amounts paid to promoters)
Not having s.761: N/A, transaction with 3rd party is valid, directors can be fined, if company fails to meet obligations within 21 days of formal demand directors are personally liable, grounds for winding up if not issued within 12 months
Accounts: 9 months, 6 months