How do i choose the right legal structure for a company?

[Susan06]

The following legal structures exist for companies:

Limited liability company (LLC)

Joint-stock company (JSC)

Limited partnership (LP)

Limited liability partnership (LLP)

Foundation

General partnership (GP)

Branch office

Representative office

Trust

Which do you think is the best of the above for a small starting business that has 4 share holders and has plans to expand to atleast one that allows the employment of 200-300 People?

 

[Braga13]

Avoid partnership and pick those who are wothie of trust

 

[Nurudeen]

The legal structure to choose for your company will be determined on how you want to set it and majorly funds. If for example your company or organization is about helping people in the society with one challenges or the other then you will need to register under non governmental organization or foundation.

 

[chicnthin]

I think the legal structure that is well suited for you is a company. Just with the amount of people you would want to hire and an already existing shareholders, it would be ideal to create your own company. This would create an opportunity for those who are jobless as well.

 

[Damismiling]

A business structure is a category of organization that is legally recognized in a given jurisdiction and characterized by the legal definition of that particular category. To determine which jurisdiction your company fall into is a determinant of so many factors. Financial capacity, labour strength, ownership status

 

[Seun4luv]

If you want sole or primary control of the business and its activities, a sole proprietorship might be the best choice for you. You can negotiate such control in a partnership agreement as well. A corporation is constructed to have a board of directors that makes the major decisions that guide the company.

 

[Janita]

Yes i will also share my opinion that is company because in this we can hire people and can start it with the help of emloyees.
But if you want limited partnership for business so you can but make sure it is limited , because for long terms it may cause the loss in company to dangerous side.

 

[Alexandoy]

With a big company that would employ 200 people means it is a big one and the best is to register it as a corporation. You can have the majority shares and let other investors be stockholders (if they are willing to buy shares in the company). A corporation here has lesser business taxes then a sole proprietorship or partnership. The ownership can also be sold in terms of stocks so you will have a lesser problem if you want to leave the business.

 

[Kayzzy3]

The following legal structures exist for companies:

Limited liability company (LLC)

Joint-stock company (JSC)

Limited partnership (LP)

Limited liability partnership (LLP)

Foundation

General partnership (GP)

Branch office

Representative office

Trust

Which do you think is the best of the above for a small starting business that has 4 share holders and has plans to expand to atleast one that allows the employment of 200-300 People?

Requirements for registration of business vary from country to country depending on their companies and allied laws, so I will speak from the standpoint of my country.

A company starting with four stakeholder may not be registered as a limited liability company, Joint stakeholders or public company, it can however be registered as a limited liability partnership company, foundation or general partnership.

And yes it is very important your register the company since you want to go into partnership with friends and also get the deed of partners done and signed, this is very important.

 

[Setho]

The legal structure of your business really is dependent on so many factors such as how you want it to be run, who the people going to run the business and the capital and location of the business. You should sit careful and determine this as it is reflecting on your business plan for it as well.

 

[Ralphjoe]

Choosing the right legal framework or structure for your company with deep end generally on the size of the organisation. Most big organisation has lawyers that work in their several legal department why some lesser companies don't even have any legal department.

 

[Chibson]

All these business structures you mentioned have both advantages and disadvantages. I wouldn't advise you as someone who is new to business to immediately venture into partnership business.

 

[Trexxxy]

Well, I think it depends on a lot of factors. The rate of growth and the type of business the company conducts. The above-listed structures have their advantages and disadvantages, overall I think the first one might be the best option.

 

[Dowenship]

The following legal structures exist for companies:

Limited liability company (LLC)

Joint-stock company (JSC)

Limited partnership (LP)

Limited liability partnership (LLP)

Foundation

General partnership (GP)

Branch office

Representative office

Trust

Which do you think is the best of the above for a small starting business that has 4 share holders and has plans to expand to atleast one that allows the employment of 200-300 People?

I can see joint-stock company and general partnership. You see this two name about then with all cost. The company will grow no doubt but you may loose it at the end.

 

[GIFTMICHAEL]

I think LLC should be taken by you, I prefer running such kind of business, cos you're the owner and the final decision maker in your company.

 

[Eodine]

I think limited liability company would be the best pick here to pick for your new business start up but keep in mind that if you want a legal team to help in the process of a business you would have to make research.

 

[cowantussie]

If you want sole or primary control of the business and its activities, a sole proprietorship or an LLC might be the best choice for you. You can negotiate such control in a partnership agreement as well. A corporation is constructed to have a board of directors that makes the major decisions that guide the company.

 

[nimzy]

As s local man without the availability of the knowledge about a particular thing it will be very difficult to choose the right legal structure. the only solution of having a legal structure Is to have engage the service of high trained professionals who are more experienced than you to assist you have a better structure.

 

[tyrim88]

I think it all depends on what you want at present and the forecast and the projection of hat you have in mind for the future.If the funds is avialable and you need technical input to drive in the vision of the firm.You can go into sole propriotorship and in the area of technical input embrace limited liability company with with you being the major share holder and an agreed share for investors.

 

[delnovem]

Business owners must meet all federal, state, and local tax obligations to stay in good legal standing. The type of business structure you choose impacts your personal liability and which taxes your business must pay.