An understanding of each of the legal statuses is required, in order to select the correct status for your business and ensure you are following corporate governance. A Sole Trader - All that is required is to inform the HMRC that you have started selling and will start to be taxed as self-employed, you are required to keep a record of accounts and are able to employ people if you choose, operating a sole trader does mean that as an individual you are personally responsible for the debts of the business which in the most extreme cases could result in the loss of your home and belongings, the advantages of this type of status however, is the ease that of set up and allows you to be fully in control of the business with no partners or a board to answer too, you may also be able to apply for tax deductions and are able to dissolve the business quickly and with ease. A partnership is owned by 2 or more people and the business is shared equally, a partnership is more expensive and takes longer to set up than a Sole Trader as you will want to get the contracts checked by a professional, an example of a successful partnership would be Steve Jobs and Steve Wozniak who founded Apple in 1976, the technical ability of Wozniak and Jobs business acumen made it a perfect match (Businessinsider, 2010). A key advantage of this type of legal status is it created opportunities for quick growth as banks are more likely to grand a business loan when there are multiple owners. A Limited Liability company allows owners to limit their personal liabilities while also benefiting from tax benefits, members are protected from being found personally liable for the businesses debts whilst carrying out the businesses activities, LLCs can have more than one member and the profits and losses do not have to be shared equally. The disadvantages however are that they can be expensive and complicated to create however many look at that as the small price to pay for limiting your own personal liability. When deciding which to pick, a variety of factors need to be considered including flexibility, complexity, liability, control, capital investment and regulations