ABSTRACT
The requirements in relation to accounting records and returns are similar to those of a sole trader and in general a partner’s liability is unlimited.
Limited company
This is the most common business entity. Companies are incorporated under the Companies Act 1985 which requires that an annual audit is carried out for all companies with a turnover in excess of £1,000,000 or a review if the turnover is less than £1,000,000 and that accounts are filed with the Companies Registrar. Generally an individual shareholder’s liability is limited to the amount of the share capital he is required to subscribe.
