Businesses can take many forms and may vary in size and complexity. This fact sheet focuses on the three business types below:
- A sole trader is a person trading on their own and is not incorporated.
- Partnerships can be two or more persons who have an agreement to run a business. Many partnerships are established with a formal agreement.
- A limited partnership is incorporated as a separate legal arrangement that has two types of partners; general and limited partners. The difference between general partners and limited partners is that limited partners are only liable to the extent of their financial contribution to the partnership. They also have restrictions on involvement in management and the activities that they can undertake within the partnership.
This fact sheet is to be read in conjunction with the beneficial ownership guideline.