The simplest and most typical type of business structure is a sole proprietorship. In a sole proprietorship, just one individual owns and runs the company. The owner is accountable for every area of the company and is held legally and financially liable for any liabilities that develop. As a result, if the company is sued or goes bankrupt, the owner’s personal assets could be at stake.
Similar to sole proprietorships, partnerships have two or more owners. Limited partnerships are those in which there is at least one general partner who manages the business and is personally liable and one or more limited partners who contribute capital but have limited liability. General partnerships are those in which all partners share equally in the profits and losses of the business.
The hybrid business structure known as limited liability companies (LLCs) combines elements of corporations and partnerships. While being taxed like partnerships, LLCs provide the same limited liability protection as corporations. This implies that the owners are taxed at their individual tax rates on the business’s profits and losses.
The most intricate and formal type of business structure is a corporation. Corporations provide their stockholders with limited liability protection and are distinct legal entities from their owners. This protects the shareholders’ personal assets and limits their liability to the amount they have contributed to the business. Now, let’s address the pertinent queries: Can I register a limited company without engaging in any business? You can register a limited corporation but not conduct business in it. This is referred to as a dormant company and is frequently carried out for tax or legal purposes. Can two firms in the UK share the same name? In the UK, it is conceivable for two companies to use the same name, but it is not recommended. Confusion and legal problems can be prevented by choosing an original business name. Can a business name be registered but not used? You can indeed register a business name even if you never use it. However, it’s crucial to keep in mind that if another company starts utilizing your name, you might still be held accountable. Do you file a trading name registration? No, a trading name does not need to be registered. However, it is crucial to make sure that any commercial names you employ do not conflict with any already-registered trademarks or company names.
“Nike” for the manufacturer of athletic apparel and shoes or “Coca-Cola” for the well-known soft drink brand are examples of trade names. Businesses use trade names to distinguish themselves and their goods in the marketplace.
In order to use a trade name, it must first be registered with the relevant government office, such as the Secretary of State’s office. The trade name may be used by the company after registration in all of its marketing and advertising materials as well as on formal papers like contracts and invoices. It is crucial to remember that using a trade name does not give the company’s goods or services any legal protection; instead, the company would need to apply for trademark protection.