Problem
I. Sheldon is a sole practitioner offering IT & Data Protections services to customers in Northern Ireland. His main competitor is Howard, who offers similar services. Sheldon and Howard were friends at university and have now decided that they would achieve significant success if they were to work together. They now seek your advice on which business structure would be most suitable for them bearing in mind that they would wish to expand and create more jobs in the local economy. Discuss to what extent the various forms of business structure would be most suitable for their new joint business venture.
II. George has operated a painting and decorating business as a sole trader for a number of years. Now his accountant has recommended that he should consider registering as a company in order to gain the benefits of separate personality.
He is unclear as to what is meant by this and seeks advice as to what exactly are the advantages that might accrue were he to register as a private company and how he would go about registering.
Task
In your response to George
i. Explain the concept of corporate personality
ii. Advise George as to the general advantages that might follow from his change of business form
iii. Advise George as to the differences between a private limited company and a partnership.