Choosing a Legal Structure
Setting up a business is a worthy thing and it’s worth doing well. Adopting business legal structure depends on your type of business, where you want to work from and whether you take people on to help.
Registering your business with government is giving your business a legal entity different from you as the direct owner or part of the owners. Most businesses register as a sole trader, limited company or partnership.
It’s simpler to set up as a sole trader, but you’re personally responsible for your business’s debts. You also have some accounting responsibilities.
If you form a limited company, its finances are separate from your personal finances, but there are more reporting and management responsibilities. Here at Enterprise Hub we offer professional services ranges from instant private limited company registration, accounting, domain registration, etc.
A partnership is the simplest way for two or more people to run a business together. You share responsibility for your business’s debts. You also have accounting responsibilities.
Business Vs Enterprise
- While an enterprise can be a business, not all businesses are enterprises.
- An enterprise is usually a venture that reflects an initiative or high risk taking the ability of the entrepreneur.
- Enterprise connotes something bigger and far-reaching than a simple occupation.
- Business is also a type of occupation that reflects the fact that the owner is his own boss.
- Enterprise is a concept that is used more often in terms of IT industry such as enterprise solutions, enterprise security, enterprise architecture, and so on.
- Enterprise also refers to the risk-taking ability and the initiative undertaken by an individual.