Once you have come up with a business plan and have taken into account all sources of income, you can think about the organizational and legal form of the enterprise. There are several such forms, and each has its own characteristics and nuances. The main differences include the degree of publicity of the enterprise and its management system.
Necessary
business plan, cash, documents
Instructions
Step 1
Considering the types of the enterprise, LLC can be put in the first place. The abbreviation stands for Limited Liability Company. This form is convenient because there are no problems with registration and there is no need to issue shares. She has no significant shortcomings. Now there are a lot of LLCs that are registered for the purpose of fraud, hence the mistrust on the part of consumers.
Step 2
CJSC is a closed joint stock company and OJSC is an open joint stock company. The participants of the above-mentioned Companies are liable for obligations only within the limits of their contribution to the authorized capital. CJSC and JSC are considered more reliable forms of doing business, since the registration procedure takes more effort, time and, of course, money. Many partners see such forms as a stable and solid organization. This also applies to a loan from a bank - JSCs get it much easier. The difference between them is that an OJSC can sell shares on the free market, while a CJSC can only sell to a limited number of persons.
The disadvantage of joint-stock companies is expensive maintenance. Also, a significant inconvenience is the annual statutory audit, and if there are more than 50 shareholders, then a register of shareholders is kept.
Step 3
Individual entrepreneur or individual entrepreneur is the simplest form of registration. Owner, i.e. an entrepreneur, only one, therefore, he is the owner of all property. But there are pitfalls here too - an entrepreneur is responsible for all his property. A significant drawback - there may be problems with investors and bank loans.
