OUGD502 | STUDY TASK 1 | BUSINESS TYPES

Moving forward with our business, we must first decide what type of business we're going to be. There are 4 main types of business that we think would be suitable for us, which are:

- Limited Company
- Limited Liability Company
- Ordinary Business Partnership
- Unincorporated Association

As we're working on this as a team, I will be looking into an Unincorporated Association business, and seeing if this will fit our ideas.

Unincorporated Association

The definition of an Unincorporated Association from http://www.netlawman.co.uk/ia/unincorporated-associations is:

"An unincorporated association is an organisation that arises when two or more people come together for a particular purpose but decide not to use a formal structure like a company."

Pros:

• Can be set up quickly and cheaply (no setting up fees unless you involve a solicitor) 
• Cheap and relatively easy to run - no need to notify changes in office bearers to any public register 
• Offers a democratic structure with reasonably flexible procedures 
• If your group’s aims and purposes are considered ‘charitable’ (as defined by law) you can apply to the Charity Commission to be registered as a charity

Cons: 

• The group cannot hold property or enter into contracts in its own name 
• Members may be held personally liable for the organisations debts

This structure is ideal for small groups with a membership, short-term goals, low incomes, and which do not intend to employ staff or acquire property. Unincorporated organisations can take different forms such as Charitable Trusts, Friendly societies, registered charities, which are not registered as companies, and unregistered voluntary and community.