Entrepreneurs may run business operations as sole proprietorship as well as a company: partnership (general partnership, professional partnership, limited partnership and limited joint-stock partnership, as corporation (limited liability partnership, a joint stock company) or civil law partnership.
The legal form should be adjusted to the company’s type and growth dynamics. One should also take into account the size of operations and the scale of risk related with the business operations, the number of partners and the target management model, the entrepreneur’s responsibility for the company’s liability, methods of capital raising and the demand for capital in the coming years.
In justified cases one should take into account a modification to the legal form of conducting the business. Such a change may be particularly beneficial if the scale of business operations is increased considerably. In particular if continuing operations as sole proprietorship is too risky. One should remember that the selection of a specific legal form raises such consequences, as the business taxation, bookkeeping or disclosing the data on the company (publishing the company balance sheet).
We understand diverse needs of entrepreneurs. One of the objectives of Tywoniuk & Partners team is offering optimum solutions adjusted to your business.