WHAT ARE INCORPORATED BUSINESSES?

Incorporated businesses
are set up with Companies House and are governed by the Companies Act; and these require more stringent rules to be complied with along with the tax rules to comply with. The incorporation process establishes a company which becomes a separate legal entity from its owners.

They are required to file annual returns and annual company accounts with Companies House and also file annual tax returns with HMRC. These will include the different types of companies.

·        Private limited companies (LTD)

·        Public limited companies (PLC)

·        Limited liability partnerships (LLP)

Your task:

Identify 3 features of an incorporated business

Hints:

·        Limited liability status and what this means

·        Type of tax payments

·        Which tax returns should be filed

·        What the owners are called

 What is the make up of their accounts and financial statements