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WHAT IS THE ENTITY CONCEPT? This is where a business is usually seen and treated as a separate party from the business; so, the records of the business must be kept separate from the personal records of the owner of the business. The entity concept states that business transactions must be separately recorded from those … Read More
Your task: Identify 3 features of an unincorporated business Hints: Limited liability status and what this means Type of tax payments Which tax returns should be filed (self-assessment tax return or corporation tax return) What the owners are called
Unincorporated businesses are businesses that are not set up with Companies House, so these are classed as businesses and cannot be called companies. The unincorporated businesses have less stringent rules to comply with along with the tax requirements and only need to file annual tax returns with HMRC. The owners do not have … Read More
WHAT ARE INCORPORATED BUSINESSES? Incorporated businesses are set up with Companies House and are governed by the Companies Act; and these require more stringent rules to be complied with along with the tax rules to comply with. The incorporation process establishes a company which becomes a separate legal entity from its owners. They are required … Read More
WHAT IS A LEGAL STRUCTURE? Legal Structure is how an organisation is set up to operate in the eyes of the law, which affects how it pays its taxes, the degree of liability on the owners and restrictions on how it is able to operate. Your task: Identify 3 differences between incorporated businesses and … Read More
