Business Structures: PLC, SP, LLP
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Summary
This document outlines the key characteristics of different business structures: PLC, SP, and LLP. It discusses ownership, liability, and financing options for each type, highlighting the advantages and disadvantages for entrepreneurs and business owners. The different structures help investors and businesses make informed decisions.
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PLC -owned by 50 or less shareholders -shareholders have no control over business -shareholders are not responsible for any debts or losses -shareholders only forfeit their investments -more banks are willing to lend money due to more business assets to serve as collaterals SP -owned by one person...
PLC -owned by 50 or less shareholders -shareholders have no control over business -shareholders are not responsible for any debts or losses -shareholders only forfeit their investments -more banks are willing to lend money due to more business assets to serve as collaterals SP -owned by one person -less likely for banks to lend money as lack of personal assets to serve as collateral -funds are limited to owners fund’s -owner may need to pay business debts and losses using personal assets -owner has full control over business -business can exist until owner is dead LLP -owned by two or more people -more likely for banks to lend money due to more personal assets to serve as collaterals -can get more people to join and contribute capital -partners are not liable for debts and losses of business -only partner responsible for debts and losses will be liable -exists until wound up or struck off
