consent. Every member of the partnership must anyway shoulder the
consequences. Under these circumstances your personal assets could be
taken in order to pay the creditors. Even though the mistake was no fault of
your own.

Limited Liability Companies
As the name suggests, in this forms of business your liability is limited to
the amount you contribute by way of share capital.

A Limited Liability Company is a separate legal entity. Distinct from both its
shareholders, directors and managers. The liability of the shareholders is
limited to the amount paid or unpaid on issued share capital.
However, many restrictions are put on the company. It must maintain
certain books of accounts. Appoint an auditor and file an annual return with
the registrar of companies which includes the accounts as well as details of
directors and mortgages.

The biggest disadvantage is that it is more expensive to set up and there
are more rules to follow.

How you actually register your company depends on the country you live in.
Contact the authority for further information.

Bank
As soon as you register your business you should open a separate bank
account for the business. Do not pay for business expenses from your
personal accounts. Also, withdraw your personal expenses regularly from
the business accounts. And withdraw no more money for your personal use
than your company as able to generate in profit. The profit of your company
is your “salary”.

If possible, make all your transactions through your bank. It makes your
financial administration easy.
Accountant
If you start a small company with just one employee you will probably be
your own accountant. The company grow and you hire more staff. More
activity in the company is generated. Then it becomes difficult for you to do
your own accounts. You should get someone to take care of your financial
accounting.
Then you can focus on business development and sales.

You could hire an accountant or source it out to an accountancy firm.

Remember that you still have the responsibility for your finances.

Find booklet at www.DynamicBusinessPlan.com addressing these topics

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