There are several different types of business ownership. They fall into, sole traders, partnerships and private limited company categories. As the business expands it may decide to become a public limited company or to offer franchises.
A sole trader is a business that is owned and controlled by a single person. However, they may also employ workers. Individuals who provide a specialist service, such as carpenters, hairdressers or photographers are often sole traders.
A partnership is a business that is owned by two or more people. Examples of these include doctors, dentists and solicitors. The advantages of a partnership include the shared experience between owners, shared responsibility and increased work ability.
Limited companies hold a special status within the law. These companies are incorporated which means they have their own legal identity. Because of this they can sue or won assets in their own right.