Types of Companies

LBG:

A private limited company limited by guarantee, (LBG)  is an alternative type of corporation used mainly by charities and other non-profit organisations. LBGs usually don’t have a share capital, nor do they have shareholders, they instead have members that act as guarantors. It is common for companies to retain their profits within the company in order to re-invest in its operations instead of distributing the money to its members.

Other than charities, community projects, societies, clubs, often set up as a LBG, having at least one director and one member. Unlike companies limited by a share, a guarantee company can be exempt from having the word ‘limited’ or ‘ltd’ if it's set up for a certain nonprofit purpose, often charities. These companies still have to file accounts and annual return at a company house each year.



Ordinary Business partnership:

In a business partnership, you and your business partner personally share responsibility for the business. Every member can share the profits and each partner pays tax on their own share. A partner doesn't have to be a person, a limited company counts as a legal person, as well as a partner in a partnership. If there are debts within the partnership both parties are jointly liable for any amount that is owed and are equally responsible for paying off the whole debt.



Public Limited Company:

The standard legal designation of a company which has offered its shares to the general public and has limited liability. A Public Limited Company's stock can be acquired by anyone and everyone, open to the general public, holders are only limited to potentially lose the amount paid for the shares. It is a legal form more commonly used within the UK. All companies in the stock market are PBL's. Ubisoft, EA, and Activision.



LTD:

Look after everything to do with their business, its finances are separated from your personal finance.
Directors often own shares but they don’t have to. Shareholders cannot sell or transfer their shares without offering them first to other shareholders for purchase. Shareholders cannot offer their shares to the general public over a stock exchange.



LLP:

A  limited liability partnership (LLP) requires at least 2 other designated members, they can either be a person or company and will be known as a corporate member. Each member pays tax on their shares of profit like an ordinary business partnership, but aren’t personally liable for any debts the business can’t pay. E.g. One partner cannot be responsible or liable for another partner's misconduct. Unlike Limited partnerships, LLP’s only pay debts by how much they invest in the company. Whereas limited partnerships split the debt equally among them.

Sole Trader:

sole traders are people who are self employed, sole traders run their businesses as an individual, this means that they keep all the businesses profits after the taxes have been paid on them. Sole traders can employ staff and don't have to work alone, but the sole trader is personally responsible for any losses the business makes.

Tax Responsibility

as a sole trader you must:

-Send a "self Assessment tax return" every year

-Pay income tax on the profits you make

-Pay National Insurance

-You must also register for VAT if you expect your takings to be more than £83,000 a year

Unincorporated Associations:

An unincorporated association is an organisation that arises when two or more people come together for a particular purpose other than to make profit, but decide not to use a formal structure like a company. Most clubs, societies, groups, and some syndicates are unincorporated, as are most voluntary organisations.

You don’t need to register an unincorporated association, and it doesn’t cost anything to set one up.

Individual members are personally responsible for any debts and contractual obligations.

If the association does start trading and makes a profit, you’ll need to payCorporation Tax and file a Company Tax Return in the same way as a limited company.