Limited Liability Company - Business Structure Analysis - Case Study Example

The paper "Limited Liability Company - Business Structure Analysis" is a perfect example of a business case study. Entrepreneurs can use various business structures for their startup companies. The objectives of the enterprise will be met with the type of business structure that has been chosen. The major business vehicles available include Limited Liability Company, partnership, sole trade, and limited liability partnership. The operations of the company are deeply shaped by the type of business structure vehicle that has been chosen. The environment within which the company or business targets to operate is very crucial (Atkinson, 2005). A business-minded person cannot purport to start a business without considering the prevailing economic conditions. In the United Kingdom, an individual has the option of using various business structures when thinking about starting a business. The official registrar of companies: Companies House plays an important role in the registration of companies (Overesch & Wamser, 2010). This assignment discusses in detail the business structure as well as a managerial strategy for a limited public company and a partnership. This business structure analysis will base on a household goods export company targeting the overseas markets.

Discussion

It is important for every firm to evaluate its objectives with regard to the prevailing circumstances and choose the most suitable route to follow. Economic conditions in a given country determine what kind of business a person can engage in. choosing a suitable operating vehicle for the organization. It is possible for an entity to start as a partnership and later be registered as a company. Partners can come together to form the household goods export business enterprise as a partnership and later develop it into a private limited company. A simple structure that enables quick communication is needed in the establishment of the partnership. The duties and roles of each partner have to be defined in the partnership agreement. Ease of communication will just be enhanced with a team leader and the rest of the partners taking up roles to accomplish the functions of the partnership. Developing countries are in need of quality household items that are long-lasting and original. A household goods exporting company has to meet all the legal requirements before it is allowed to sell products overseas. To begin with, the partnership has to be formed accordingly under the Partnership Act 1890.

Partnership

Partnerships are run and owned by individual partners who are jointly and personally responsible for the actions of other partners hence the need for a partnership deed or agreement. Partnerships are not required to audit or publish their accounts. The partners are jointly and severally liable for debts or transaction committed by the enterprise. Income tax is charged on the profits gained by the business. It is not the obligation of a partnership to publish it's financial not published. A limited liability partnership defines a kind of business structure for profit-making business but it provides limited liability just like a company and added flexibility as well as tax arrangements typical of a traditional partnership. This kind of partnership best suit professionals who are not interested in forming a company but need the protection provided slashed financial responsibility. Limited liability partnerships are regulated through the Limited Liability Partnership Act of 2000 as well as the Limited Liability Partnership Regulation 2009. The partnership has no shareholders, guarantors, or directors. The taxation of a limited liability company is different from that applied to a company.