TABLE OF CONTENTS Types of business organisation. The principle legal forms of business organisation used in Great Britain are:
Sole trader
Partnership
Corporation.
A sole trader is so called because he alone bears the responsibility for running the business and he alone takes the profit.
Partnership is defined by s1 of the Partnership Act 1890 as "the relation which subsists between persons carrying on a business in common with a view of profit".
Partnership law, i.e. the law governing such associations and now largely codified by the Partnership Act 1890, is based on the law of agency, each partner being at one and the same time both the principal and agent of the other(s).
A partnership does not have a separate legal personality. Partnerships are not legal entities distinct and separate from the persons of which they consist: their business and personal affairs are not separate.
A partnership does not require any formality to set up, in the sense there is no legal obligation for a Partnership document. Consequently a partnership can be formed orally by conduct or in writing. Not being a separate legal entity, the liability of the partners is unlimited and is joint and several.
Limited Liability Partnership. The Limited Liability Partnership Act 2000 came into force on 1 April 2001 and allows for the creation of a new form of business entity.
An Incorporation document must be filed at the Companies House stating
