Week 1 Discussion: UK vs USA company types + Chile.
UK vs USA (similarities): Each makes an interesting point with the other's choices—sole ownership; partnership and limited-liability. In either scenario, limited liability also distinguishes between personal assets and business debts and helps foster entrepreneurship and investment.
UK vs USA (differences): The most common incorporated form in the UK is Ltd (private limited company), while larger/public companies are usually plc. In the USA, most small/medium businesses utilise an LLC while larger businesses in most cases will use a corporation form (e.g., C-Corp).
Chile (my country): Chile commonly uses: There are also flexible options, such as: (a)
SpA (one or more shareholders).
Ltda (limited liability with partners).
S.A. (bigger companies; open/closed).
EIRL (one owner with limited liability).
Conclusion: Though names vary, the logic holds everywhere: Simple structures are easier to start and continue to be simpler, and limited-liability forms lower personal risk and enable growth.
UK vs USA (similarities): Each makes an interesting point with the other's choices—sole ownership; partnership and limited-liability. In either scenario, limited liability also distinguishes between personal assets and business debts and helps foster entrepreneurship and investment.
UK vs USA (differences): The most common incorporated form in the UK is Ltd (private limited company), while larger/public companies are usually plc. In the USA, most small/medium businesses utilise an LLC while larger businesses in most cases will use a corporation form (e.g., C-Corp).
Chile (my country): Chile commonly uses: There are also flexible options, such as: (a)
SpA (one or more shareholders).
Ltda (limited liability with partners).
S.A. (bigger companies; open/closed).
EIRL (one owner with limited liability).
Conclusion: Though names vary, the logic holds everywhere: Simple structures are easier to start and continue to be simpler, and limited-liability forms lower personal risk and enable growth.
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