ltd company v partnership

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Benefits of setting up a limited company from being a successful partnership In order for us to be able to understand the benefits, I will first of all define and describe both of the two types of businesses. A partnership is a business run by two or more people with a view to making a profit. Generally, partnerships are small businesses, but there certain types of business activities in which very large partnerships are operated. Professional partnerships, such as those between solicitors, may develop to be very large businesses. There is a legal restriction where the number of partners in most types of partnerships are limited to 20. However, professional partnerships (examples include: solicitors, accountants, surveyors or architects) are exempt from this limitation. The very largest partnerships are such big businesses that people who have barely met each other are in partnership together. Many different trades and professions may be run through the use of a partnership, apart from the professions noted above, doctors, pharmacists, business consultants, shopkeepers, builders, hairdressers and almost any other type of trade or business activity could be run via a partnership. If a partnership loses money, or cannot repay loans, lenders are able to recover money owed by requiring the partners to sell items of property that they own personally. Limited companies on the other hand are a legal arrangement for regulating the ownership of a business. A company is regarded as a separate person for the purposes of the law. In example, a company unlike a partnership can enter into a legal contract. This would mean that if the other contracting person sues; he or she sues the company, not the owners of the company. The company itself becomes liable for its unpaid debts, overdrafts and other similar liabilities. Setting up a company involves

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