Notes

1. Sole trader: A person, who is the exclusive owner of a business. Advantage is that you are entitled to keep all the profit after tax has been paid, however the disadvantage is that you are liable for all the loses.
2. Partnership: A business operated by two or more people. The advantage of that would be that your business is easy to establish and start-up costs are low and the disadvantage is that there is a risk of disagreements and friction among partners and management.
3. Limited company: In a limited company, the liability of members or subscribers of the company is limited to what they have invested or guaranteed to the company. The advantage is that your professional status and image will increase when you start trading as a limited company. The disadvantage is that Required to pay a registration fee to Companies House to incorporate.
4. Public Limited company: a company registered under the Companies Act (1980), with statutory minimum capital requirements and shares offered to the public subject to conditions of limited liability. The advantage is that you have a better access to capital and the disadvantage is that Once you’re listed on a stock exchange, the company is likely to have a much larger number of external shareholders, to whom company directors will be accountable
5. Social enterprise: an organization that applies commercial strategies to maximize improvements in human and environmental well-being. The advantage is that it Creates access to a different type of operating capital and the disadvantage is that you have to compete in the commercial market and face the same challenges and risks common to all businesses.