An Investigation Into the Various Forms of Business Structures.

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An investigation into the various forms of business structures and recommendations of most appropriate legal structure available under UK law.

2. Terms of reference

As a consultancy group the author is requested to review the main forms of business organisation that exist under UK law. The author was to suggest the benefits and shortcomings of each legal structure discussed. Finally the author is then requested in conjunction with the client's current financial situation, to ascertain which would be the most appropriate legal structure available.

3. Procedure

The author, in order to complete the report studied several texts with regards to company law. All references can be found in the reference list found in the closing section of the report.

4.Findings

As a consultancy group it is important to review the main forms of business relating to James and Paul's current situation. It is not possible to say that the balance of advantages always lies in the form of one form of business to another, but it will certainly be a powerful consideration when entrepreneurs such as James and Paul by weighing the relative advantages and disadvantages of each form of business medium.

4.1 Partnership

The first form of an organisational structure suitable to James and Paul's would be a partnership. According to Adams (2000) partnerships often known as firms, are defined by s 1(1) of the partnership act 1890 which states `partnership is the relation which subsists between persons carrying on a business in common which a view of a profit'. The legal controls over a partnership are not over extensive. There is no necessity for registration. There is no need for the parties to have a partnership agreement. Their need n...

... middle of paper ...

...e partnership does not pay tax as such. Therefore it can be proposed that upon analysis of all forms of businesses and each of our client's current financial state it would be advisable that a limited liability partnership would be suited best.

Reference List

Adams, A (2000) Law for Business Students (2nd Ed) Longman

Bradgate, R (2000) Commercial Law (3rd Ed) Butterworths

Cheeseman, H (2000) Contemporary Business Law Prentice Hall

Furmston, M (2000) Principles of Commercial Law (2nd Ed) Cavendish

Goulding, S (1999) Company Law (2nd Ed) Cavendish

Kelly, D (2000) Principles of Business Law (3rd Ed) Cavendish

Lawson, R (1998) Business Law (8th Ed) Financial Times Management

Dine, J (1995) Company Law (4th Ed) Palgrave Hall

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