Posts Tagged ‘Proprietorship’

Sole Proprietorship

Posted in business on May 10th, 2009 by Admin – Comments Off

Sole ProprietorshipDuring the process, there are always certain questions that you must decide. From a vague idea about the new house, the concrete problems such as: Should you build a house in one or more floors? How many rooms do you or would you? What materials and colors right?

The same type of choice you must make when establishing a business. One of the most important choices is to decide what form of organization that is right for you. When you select the organizational form, you must take into account the nature and your own assumptions.

Sole proprietorship may be right for you to start up all alone. There is no requirement that you must ask with a certain capital, but nor is there any economic border between you and your business. Should you be so unfortunate that you accrue a debt that you are unable to operate, the creditors may require you to eg. sell your private car or house to settle the debt. If you are doing business with large financial risk, so it would be natural to consider starting a corporation.

There are several types of general partnerships. Absolutely all forms of general partnerships require at least two owners (participants). Responsible companies may be appropriate if you want to start up with others, ie that you are not the sole owner.
Neither here there are requirements that a certain amount of capital must be shot into. But as for sole proprietorships are the owners (participants) responsible for the debt that the company had to incur.

In a general partnership (ANS) is liable to each participant for the entire debt (jointly and severally liable). A creditor can thus collect any debt from the person or of the participants who have private property (most pay-able).

A company with a shared responsibility is a variant of the general partnership. Here, participants share the risks between them, so that for example, four participants taking 25% each of the risk. All participants have an overall responsibility for all corporate debt, but each participant can only be charged up to its ownership. That is, if the company can not pay its debt, the creditor can not claim more than 25% of the debt covered by each participant. A creditor can thus not be at the participants directly, but must first make their claim against the company. Should you be helping to launch an ANS or DA, it must be designed in a company agreement which, among other things regulates the relationship between the participants.

Limited company may have one or more owners. In order to start a limited company requires a minimum share capital of U.S. $ 100.000, -. Assets, ie the equipment to be used in the food industry, can be used as part of the share capital (cash contributions). Items. the assets can be a car, computer equipment, furniture, etc. that must takseres of a publicly approved surveyor before they can be part of the share capital. In a limited company is the personal responsibility to creditors is limited to the share capital that the shareholder has injected. In certain cases, however, board members get a responsibility. Should you start an AS, you must design a founding document and constitution of limited company. A corporation must also have an accountant affiliated with the company.