Types of Business
This method of setting up a business does not involve paying any registration fees, however you have unlimited liability.
What is a Sole Trader
This document can be drawn up by a lawyer and clearly states how a business will be run and what will happen if a member should die or choose to leave the business.
What is a Partnership Agreement
The money, property and assets that a partnership or business has.
What is Capital
This means a person is completely responsibility in paying back any debts their business may owe.
What is unlimited liability
The people who set up a company.
What are the Founders
This means that the business is registered in its own name and has its own legal personality. It's what happens when you register a limited liability partnership.
What is an Incorporated Business
This document sets out the essential information about the company. Your solicitor must file this document.
What is The Memorandum of Association
Another way of saying that your business has its own legal personality.
What is a Legal Entity
This means that the business is a separate legal entity. The business can go bankrupt but your personal assets are safe.
What is Limited Liability
Another word for the owners of a company.
Who are the Members/Shareholders
This type of company - which has its own legal personality - must end with the abbreviation 'LTD' and cannot offer shares in the company to the public.
What is a Private Limited Company
This document contains the internal rules that the company and its shareholders must follow. Your solicitor must file this document.
What are the Articles of Association
An advance payment of a partner's share in the profits.
What is Drawings
This means that partners are responsible both individually and together as a group. If the partnership owes money to someone, that person can demand it from individual partners or each partner.
What is Joint And Several Liability
The amount and value of shares that the members of a company hold.
What is Share Capital
This type of company - which has its own legal personality - must end with the abbreviation 'PLC' and can offer shares in the company to the public.
What is a Public Limited Company
The place where your solicitor will file all of the necessary documents to certify your business.
What is the Companies House
How many weeks or months warning a partner has to give to the other partners between leaving the partnership.
What is the Notice Period
The total value of share capital divided by the number of shares. This value is fixed - it does not change.
What is Nominal Value/Par Value/Face Value
This type of company is similar to a partnership with the added benefit of limited liability. Very popular with law firms!
What is a Limited Liability Partnership (LLP)
Before your company can trade under their chosen name, the Companies House must issue this certificate.
What is a Certificate of Incorporation
To force someone out of a partnership because they broke the Partnership Agreement.
What is Expel/Expulsion
The part of a company's profit it pays to its shareholders.
What is Dividend
An alternative to setting up your own business, you can buy one from a company formation agent that is all set up and ready to trade!
What is An Off-The-Shelf-Company
The actual amount one pays for a share.
What is Market Value
The difference between what you pay for a share and the original value at which the company issued the share.
What is Premium
The maximum amount of share capital that a company can have.
What is Authorized Share Capital