Keeping the wolf from the door when you are running a small company can be very time and energy sapping. From the word go! there is an overwhelming need to keep all the books in perfect order – a might easier these days with online banking and instant answers available. However, there are still headaches ahead if you don’t take a few simple measures to ensure you comply with company law. Firstly make sure you engage an accountant, not just someone’s bookkeeper, but a trained accountant who is familiar running a small business and all aspects of commercially run companies. Make sure you understand the difference between being say, a limited liability partnership and a limited company. Wheras the LLP combines benefits of having partners with limited liability of a company and LLPs are very often how professional practices operate, such as the legal profession and accountancy. Limited companies on the other hand work under a more complex structure; the business is a totally separate legal product from its owners who are known as the shareholders. These companies offer limited liability, so the owners are not personally liable for any of the company’s debts. Difficult to untangle things when they go wrong. Partnership is where two or more individuals trade together and share the profits and losses of the business. This means that each partner is reesponsible for the business management to a certain degree.
