Types of Business

There are 3 major types of business: Sole Proprietorship (commonly called soletrader), Partnership and LLC (Limited Liability Company).

Sole Trader

A Sole Trader Business is the simpliest business type because it's owned by a single Individual (the Trader). It refers to a person who owns the business and is personally responsible for its debts, and therefore there is no legal distinction between the owner and the Business. For instance, if a person by the name of "John Doe" registers a Sole Trader Business called "Elite Plumbing Services", then "John Doe" and "Elite Plumbing Services" are considered the same. This Business structure is suited for Professionals / Traders operating individually.

Partnership

A Partnership is similar to a Sole Trader in business structure, but is owned by two or more individuals and/or firms, referred to as "partners". The partners agree to share the profits and responsibilities as outlined by a partnership agreement.

Limited Liability Company

A Limited Liability Company is the most respected business entity, and is usually the ideal entity for conducting Business. The Company itself becomes a legal entity, separating the assets and liabilities of the Company from the Directors and shareholders.

There are also various subtypes of Limited Liability Companies:

NGO

An NGO is a Non-Government Organization.

External Company

An External Company is one that was originally incorporated outside of Trinidad & Tobago and wishes to trade inside Trinidad & Tobago.

Public Company

A Public Company is one allows the public to trade a portion of its shares.