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Critically Assess the Various Legal Structures Available to Northern Ireland Business Enterprises in the 21st Century

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Critically assess the various legal structures available to Northern Ireland business enterprises in the 21st Century.
There are various options to anyone wishing to establish a business in the Northern Ireland economy in the 21st century. This paper will discuss and assess the three legal structures; sole traders, partnerships and incorporated bodies. Thus, establishing the features, operations, advantages and disadvantages of each. A sole trader is the simplest type of business structure. Tracey defines a sole trader as “a term used to describe an individual who carries on a business or profession without partners”. An alternative term is ‘sole practitioner’. The individual is free to engage in any kind of lawful business activity. Although small, a sole trader is not necessarily any less successful than a larger business. According to the Office of National Statistics, as of 2013, sole proprietors represented 62.6%, of all UK private businesses. Martin McNaughton, from Newry, founded Glen Dimplex in 1973, manufacturing heating pumps. He now ranks at number 736 on the Forbes Rich List, employing 10,000 staff, making a billion sales each year.The main advantage of being a sole trader is having total control over the business. There are no shareholders nor business partners one can be held accountable to. The business person can therefore make any decisions they see fit. In addition to this a sole trader receives, and keeps, 100% of the profits earned by the business and can cease trading at any time. Sole traders are not bound by a regulatory body, nor are they subject to the same filing requirements of a company. Instead the two main obligations a sole trader must comply with are the following; registering with Inland Revenue within three months of establishment and ensuring the name of the business complies with Part 41 of the Companies Act 2006. Their

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