Julia is considering establishing a business providing children’s art classes. She will be investing all her savings in the new venture. She will need to buy art equipment and lease a property. She asks Emma, a close friend, to help her run the classes. Emma is keen to do so but would like to receive a share of the profits in return. Julia would like advice on the following matters:

(a) The core differences between running the business either as a private limited company or a traditional partnership (not an LLP); and

(b) The legal obligations required before each business form can commence trading.