Creative Industries Level 5:Setting Up Your Own Company

Setting up your own company is always an option but understanding how to get to that point is another task. Understanding that all areas for a company will come under observation and a major factor of the company is to sort the matter of ownership and liabilities of the company owner(s). This where Share Holders/Directors come into play as the owner(s) has the option of distributing the ownership percentage of 100% to 50% to him or herself and sharing the rest of the 50% to workers or another party to fit the roles, equality to share the income and outcome of the company.

But with shared responsibilities of the company can also have its disadvantage as the share could be seen as unimportant by distributing its percentage even further and such as taking 50 shares worth £500 and distributing it further to 50,000 shares decreases the worth. Limited companies use this method when changing there company into a public one, allowing the general public to purchase shares, to possibly out buy the company from the owners and gives the company more investors.

The legal status of the exampled company given previously is not thought up on the spot but rather by the companies actions such as their income actions, would the company use the profit to put it back into the company or increasing the workers wages? and these types of actions allow outsiders to see what kind of company they are from Public Partnership, Limited or Social Enterprise and how tax affects the company as well as owner and workers are payed and using the companies money.