Sole Traders and Partnerships

Transcript:

Hello!

Today we look at some important words and concepts in relation to sole traders and partnerships in the UK. These are both common business structures, but they differ in terms of liability, governance, and taxation.

Sole Traders

A sole trader (ditta individuale) is an individual who owns and runs (possiede e gestisce) their own business and is not in a partnership with others. Doctors, plumbers (idraulici), lawyers, handymen (tuttofare), dentists and so who work alone are all classified as sole traders.

There are some key features that distinguish sole traders:

• Legal Status: The business and the individual are the same legal entity, so we can define a sole trader as unincorporated (non costituita in società);
• Liability (Responsabilità): Unlimited liability—personal assets are at risk to cover business debts;
• Taxation: Profits are taxed as personal income via Self Assessment (Autovalutazione fiscale/Autoliquidazione delle imposte);
• Governance: The sole trader alone has full control over decision-making;
• Registration: Must register with His Majesty’s Revenue & Customs (HMRC) but not with Companies House.

Partnerships

These involve two or more individuals running a business together. There are three main forms of partnerships in the UK:

Other points to note:

• Both sole traders and partnerships are taxed individually on their share (quota) of profits and not at the business level (a livello di impresa);
• Companies have articles of association (statuto) and shareholders, while these words cannot be used for partnerships because they have partners and may have a partnership agreement.

Thank you very much, and see you next time for more Peter’s Pills to improve your legal English.

Legal, and politically correct, Season’s Greetings to all of you form me!

To whom it may concern,

I, the undersigned, in my capacity as a representative of my own interests and/or those of any associated entities, hereto extend my festive wishes in accordance with all relevant and applicable statutes, regulations, directives, or implied traditions.

Without prejudice to the generality of the foregoing, I wish you a Merry Christmas, Happy Holidays, and/or an entirely secular winter celebration, as per your subjective interpretation, personal preferences, or any philosophical and/or religious affiliations, if applicable.

Furthermore, I express my sincere hope, subject to all terms and conditions, that the calendar year ending 31 December 2024 will culminate in outcomes that are prosperous, harmonious, and devoid of disputes requiring litigation or mediation. I anticipate that the New Year (2025), should it commence as scheduled, will bring you success, joy, and minimal liability exposure in both personal and professional endeavours.

Please be advised that the foregoing greetings are offered on a strictly “as is” basis, without warranties, express or implied, as to their appropriateness, applicability, or cheer-inducing efficacy. No responsibility shall be accepted for any emotional distress or excessive merriment arising herefrom.

Yours seasonally,

Peter Liebenberg

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Legal English – Sommario delle Lezioni

• Legal English – Peter’s Pills – Lesson 85 – Sole Traders and Partnerships

• Legal English – Peter’s Pills – Lesson 84 – General English vs Legal English 2

• Legal English – Peter’s Pills – Lesson 83 – General English vs Legal English 1

• Legal English – Peter’s Pills – Lesson 82 – Next of kin

• Legal English – Peter’s Pills – Lesson 81 – File, Register and Enrol

• Legal English – Peter’s Pills – Lesson 80 – Securities

• Legal English – Peter’s Pills – Lesson 79 – Legatee vs Devisee

• Legal English – Peter’s Pills – Lesson 78 – Adverse possession

• Legal English – Peter’s Pills – Lesson 77 – Probate

• Legal English – Peter’s Pills – Lesson 76 – File a deed vs Record a deed

• Legal English – Peter’s Pills – Lesson 75 – Allotting shares, Issuing shares and Placing shares

• Legal English – Peter’s Pills – Lesson 74 – Personal Representatives

• Legal English – Peter’s Pills – Lesson 73 – Essential Elements of a Contract

• Legal English – Peter’s Pills – Lesson 72 – Types of cases: Cornerstone and Milestone cases

• Legal English – Peter’s Pills – Lesson 71 – Types of cases: Landmark cases

• Legal English – Peter’s Pills – Lesson 70 – Specific performance

• Legal English – Peter’s Pills – Lesson 69 – Wills

• Legal English – Peter’s Pills – Lesson 68 – Notice

• Legal English – Peter’s Pills – Lesson 67 – Bonds vs Debentures

• Legal English – Peter’s Pills – Lesson 66 – Person Persons People

• Legal English – Peter’s Pills – Lesson 65 – Financial Reporting Words

• Legal English – Peter’s Pills – Lesson 64 – Representations and Warranties

• Legal English – Peter’s Pills – Lesson 63 – Machine translations

• Legal English – Peter’s Pills – Lesson 62 – Legal Timelines

• Legal English – Peter’s Pills – Lesson 61 – Liens

• Legal English – Peter’s Pills – Lesson 60 – Test your Legal English

• Legal English – Peter’s Pills – Lesson 59 – Appurtenent vs In gross

• Legal English – Peter’s Pills – Lesson 58 – Building societies and Banks

• Legal English – Peter’s Pills – Lesson 57 – Valid, void and voidable contracts

• Legal English – Peter’s Pills – Lesson 56 – Rescission

• Legal English – Peter’s Pills – Lesson 55 – Golden expressions

• Legal English – Peter’s Pills – Lesson 54 – Pre-emption right vs Right of first refusal

• Legal English – Peter’s Pills – Lesson 53 – What do we mean by “agent” of a company?

• Legal English – Peter’s Pills – Lesson 52 – Voting at a meeting

• Legal English – Peter’s Pills – Lesson 51 – Contracts vs Deeds

• Legal English – Peter’s Pills – Lesson 50 – Executive and Non-Executive Directors

• Legal English – Peter’s Pills – Lesson 49 – Transfer of shares vs transmission of shares

• Legal English – Peter’s Pills – Lesson 48 – They, them, their for singular nouns

• Legal English – Peter’s Pills – Lesson 47 – Jointly and severally

• Legal English – Peter’s Pills – Lesson 46 – Invoice words

• Legal English – Peter’s Pills – Lesson 45 – Quotation

• Legal English – Peter’s Pills – Lesson 44 – Gazumping and Gazundering

• Legal English – Peter’s Pills – Lesson 43 – English words that the English do not understand

• Legal English – Peter’s Pills – Lesson 42 – Easement vs Profit à prendre

• Legal English – Peter’s Pills – Lesson 41 – er, -or and -ee names

• Legal English – Peter’s Pills – Lesson 40 – The Objects Clause

• Legal English – Peter’s Pills – Lesson 39 – When is Latin hot, and when is it not?

• Legal English – Peter’s Pills – Lesson 38 – Default

• Legal English – Peter’s Pills – Lesson 37 – Company Agent

• Legal English – Peter’s Pills – Lesson 36 – Injunction (false freind)

• Legal English – Peter’s Pills – Lesson 35 – Mortgage

• Legal English – Peter’s Pills – Lesson 34 – Freehold, Leasehold and Commonhold estates

• Legal English – Peter’s Pills – Lesson 33 – Transferor, Transferee and Transmittee

• Legal English – Peter’s Pills – Lesson 32 – Tax evasion, tax mitigation and tax avoidance

• Legal English – Peter’s Pills – Lesson 31 – Numbers

• Legal English – Peter’s Pills – Lesson 30 – Ordinary resolutions vs special resolutions

• Legal English – Peter’s Pills – Lesson 29 – AGM vs EGM

• Legal English – Peter’s Pills – Lesson 28 – A going concern

• Legal English – Peter’s Pills – Lesson 27 – Collocations: Violate, breach, break, disobey and infringe

• Legal English – Peter’s Pills – Lesson 26 – Company meeting words

• Legal English – Peter’s Pills – Lesson 25 – Mortgagor vs Mortgagee

• Legal English – Peter’s Pills – Lesson 24 – Fixed charges vs Floating charges

• Legal English – Peter’s Pills – Lesson 23 – Doctrine

• Legal English – Peter’s Pills – Lesson 22 – Construe

• Legal English – Peter’s Pills – Lesson 21 – Sign vs Execute

• Legal English – Peter’s Pills – Lesson 20 – The closing statement

• Legal English – Peter’s Pills – Lesson 19 – Writing Business Emails

• Legal English – Peter’s Pills – Lesson 18 – Limited companies

• Legal English – Peter’s Pills – Lesson 17 – Annual Accounts

• Legal English – Peter’s Pills – Lesson 16 – Meetings

• Legal English – Peter’s Pills – Lesson 15 – Attorney-at-law vs Attorney-in-fact

• Legal English – Peter’s Pills – Lesson 14 – Here and there compounds

• Legal English – Peter’s Pills – Lesson 13 – Subject Matter

• Legal English – Peter’s Pills – Lesson 12 – The clear days rule

• Legal English – Peter’s Pills – Lesson 11 – Shareholder, Member or Holder of shares?

• Legal English: Peter’s Pills – Lesson 10 – Competition Law

• Legal English: Peter’s Pills – Lesson 9 – Lasting Power of Attorney

• Legal English: Peter’s Pills – Lesson 8 – Guardianship

• Legal English: Peter’s Pills – Lesson 7 – Damage vs Damages

• Legal English: Peter’s Pills – Lesson 6 – Legal Doublets