How To Choose A Form Of Ownership

Table of contents:

How To Choose A Form Of Ownership
How To Choose A Form Of Ownership

Video: How To Choose A Form Of Ownership

Video: How To Choose A Form Of Ownership
Video: Chapter 3 | Choosing Form of Ownership 2024, December
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Any line of business must be officially registered with government agencies. The most common organizational and legal forms of ownership are individual entrepreneurs, LLC and CJSC. It remains only to choose which form is most suitable for you.

How to choose a form of ownership
How to choose a form of ownership

Instructions

Step 1

Determine the goals and objectives that your company or enterprise will fulfill, as well as the scale of the future business. It is these factors that play a key role in the choice of the organizational and legal form of ownership.

Step 2

Analyze the pros and cons of different organizational and legal forms. Only after weighing all the pros and cons, you can choose the most optimal option for your business.

Step 3

If you are the only participant in your activity, then feel free to register as an individual entrepreneur. First, you will not need to create a company charter. Secondly, you can register your business at the address where you live, which means that there is no need to resolve the issue with a legal address. Another advantage is the smooth cash withdrawal from the bank. But the downside is that in case of unforeseen circumstances, you risk all your property.

Step 4

If several partners participate in the formation of a new company, choose a limited liability company as the legal form of ownership. In this case, all founders of the LLC are liable before the law, and no one risks their property, but only shares. Also, if you plan to trade in alcohol-containing products, then for an LLC you can obtain a license for this type of activity, which cannot be done by an individual entrepreneur. When registering an LLC, one cannot do without a charter and a legal address. You also need to issue a bank account, make a seal and contribute your share to the authorized capital.

Step 5

The same common form of ownership as an LLC is a closed joint stock company. The difference is that the founders of the CJSC must register their shares with the Federal Service for Financial Markets. With these same shares, they are responsible before the law and can only sell them within the organization. Therefore, if it is planned to attract investors, then register a CJSC, the shareholders of which they can become after the company receives all the official documents for conducting business.

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