ENTREPRENEURIAL SURVIVAL Essay Example | Topics and Well Written Essays - 750 words

ENTREPRENEURIAL SURVIVAL - Essay Example As a result of this, the paper focuses on the types of accounts and reports small and medium-sized companies deliver to Company House; showing the deadlines, methods of filing these and the consequences for failure to do the same. There are hundreds of millions of businesses set up each year globally. Starting ones business is always a very exciting experience filled with ambitions and expectations. However, statistics show that out of every 5 businesses set up, 4 will fall in a span of three years. This therefore calls for one to pay attention to the list of options at his disposal and the legal framework involving each and every one of them. This refers to an individual who runs by his/ herself an unincorporated type of business. This is always the easiest option that does not involve much framework. This individual incurs taxes under the system of Inland’s Revenue Assessment with income tax come to after deductions of legitimate expenses incurred by the business and one’s personal allowance. The sole trader is accountable for all the company’s debts and profits. This is a cooperation of at least two individuals solely bound with the shared vision of doing business together. They operate within the boundaries of the Partnership Act of 1890. However, this type of structure does not have its own legal personality hence the partners are to answer for any debts the business incurs. The partnerships agreement covers for: Incorporating what the business per takes of blows a new breath into the whole scene as the business is now viewed as legal person different from the directors. The profits and losses incurred are only limited to the company and it too has its obligations. This therefore means that upon the exit of the management or the shareholders, the company does not cease to be. This is also known as a limited â€Å"company†. A limited company has a higher probability of incurring less tax compared to the other types of companies.