What are the main types of business for profit structure in the UK?
Sole trader A sole trader is the simplest, least regulated form of business structure in the UK. A sole trader owns his own business and is personally liable for all its debts. Liability is unlimited: the trader may lose all his personal assets if the business is unable to pay its debts. A sole trader operating under a name other than his own must show his own name at all business premises, on office stationery and on invoices. He must also include on stationery and invoices an address in the UK where documents relating to the business can be served. Because there are few statutory rules affecting sole traders, this type of arrangement is best suited to small operations, particularly in service industries. Sole traders need to prepare accounts for the value added tax and income tax authorities but these accounts do not have to follow any particular format and do not need to be audited or made available to the public. Partnership A partnership is two or more persons carrying on a busine
