Method Accounting
Method Accounting

What is the difference between being self-employed, in partnership and utilising a company?

3 February 2017

Self-employment is a situation in which an individual works for himself or herself instead of working for an employer that pays a salary or a wage. A self-employed individual, who is often also referred to as a sole trader, earns his income through conducting profitable operations from a trade or business that is operated directly by that person.

A partnership is an arrangement in which two or more individuals share the profits and liabilities of a business venture. Various arrangements are possible regarding how the profits of the business are shared and the liability of the individual partners.

A company is an entity that has a separate legal existence from its owners. The owners of the company are known as members or shareholders. It’s legal status gives a company the same rights as a natural person which means that a company can incur debt, sue and be sued.

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