Industry Sector – Why the legal structure was chosen

Posted by on Apr 11, 2011 in Industry Sector | No Comments

Industry Sector
MMGHB Chartered Account belongs to the Quaternary sector, as it is involved with the transfer and processing of information, particularly by collecting clients information, and processing it into tax returns and financial statements.

Legal Structure
The legal structure that MMGHB Chartered Accountant has is a sole trader, as Jones is the single owner of her business (proprietor).

Why This Legal Structure Was Chosen
Jones says that she chose this type of legal structure because it is the simplest type of structure, and it allows Jones to make many decisions relating to the business, giving her complete control, and it also has less government regulations than many other types of legal entities. She also chose this type of structure because she has many valuable skills such as management and finance which have contributed to the successful running of her business as a sole trader.

Possible Change To Legal Structure
According to Jones, there may be a change made to the legal structure of her business in the future. This is because she states that if she accidentally gave a client some unsatisfactory information, they might try to sue her. Changing her legal structure to a private company would give her limited liability and insurance to protect her against possible legal action.

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