“The various types of businesses in the UK ”

In the UK as in all opened markets to trade, the economy is divided into 2 sectors: the Private Sector and the Public Sector. Then, particular types of business can be created regarding the sector in which it is developed. This organigram helps us to better understand the different areas, and the business types corresponding to each one.
When setting-up a business, it’s essential to choose well the type of business structure to adopt and to adhere to its special set of business regulations. Throughout the paper, we will present the different business types, their advantages and disadvantages, and compare them together.

1. The Private Sector

The private sector is defined as a part of the economy ran by individuals or groups, without necessarily being part of any organisation. The state doesn’t intervene, at the opposite of the public sector. A lot of legal structures exist for the business organizations of the private sector, depending on the jurisdiction in which they have their legal domicile.
The types of businesses in the private sector are the following:

a. Sole Traders
The Sole Trader is a one-person business. It’s the easiest and the most common business type because there are no legal formalities to start the business.
The founder-owner of the company provides all the capital needed to set-up his business and is also totally responsible for its success (he wins money) or its failure (he supports the lost). i. Advantages

As we said before, the sole trader is a business organization that requires a few formalities when creating it and a small amount of capital when starting it (depending on the business, but generally it is like this).
As it’s a one-person company, the owner can take decision quicker than in other organizations with a group of people (gain of time), control everything by himself and work as he wants to.
It’s a very interesting and free business type, which we would