(U.K.) This is the easiest and quickest form of corporation for a small, privately-owned business. Your Memoranda and Articles of Association are usually fairly straightforward to obtain, and your taxes will be lower than those of a public company. However, the owner of a Sole Trader is personally liable for all of its actions and debts, and may not be entitled to benefits, like unemployment payments, that would accrue to those running public companies.

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Tim BerryTim Berry
Tim Berry

Tim Berry is the founder and chairman of Palo Alto Software and Bplans.com. Follow him on Twitter @Timberry.