I recommend that every entrepreneur formalize their business operation, that is to say "put themselves in order" from the beginning.
This is not only to avoid problems with government entities, which is important, but also because it regulates the operation of the same business, it is better seen by banks and it is serious about the company in front of employees, customers and suppliers.
A frequently asked question is what kind of company should an SME, a small and medium-sized company, a family business and even a one-person business choose.
Today we will start with the basics. A question asked by Cecilia a few days ago said:
What criteria should I consider to choose the type of company that suits me?
I copy the answer and then, based on the queries that you leave, I will elaborate more on the subject
«The first criterion is: How many partners will the company have? A liability company in almost any of our Hispanic countries works well for companies with less than 7 partners. They are cheaper to incorporate, have independent legal status, are commercial capital companies and accepted by banks. In some countries you pay lower tax rates.
If your company is going to have more partners, I prefer that you set up a stock corporation. Where each partner holds their participation through a printed and endorsable document called ACTION. They are a little more expensive; but more versatile when you want to open the participation to new partners who add capital to the company.
A second criterion has to do with the previous point: if this will be an open or closed society? I mean if you will open the option to the entry of new partners in the future.
In any case, almost all of our legislation allows societies to be "transformed" in the course of your life.
I advise you otherwise. Talk to a lawyer and ask:
1) How much does it charge you to set up a company? -don't tell him the type-
2) Once with the price, and if you agree, make an appointment and start asking him.
What types of companies exist and what is the difference between each one?
Sometimes they do not respond splendidly as I am doing here with you in this answer. If he does not answer you abundantly, the lawyer does not suit you. Change it. You must have professionals who add value and knowledge is the first value.
