One of the first decisions you are called upon to make when you want to set up a business is the choice of legal form. The choice of company formation is difficult, so it is useful to keep the following in mind:
The type of business you want to open plays an important role in the choice of legal form. There are cases of businesses that operate only as sole proprietorships or others that are exclusively of a participatory form.
Your willingness to take risks may affect the legal form you choose. If you are not prepared to risk your capital, it is recommended to set up a company in the form of a Limited Liability Company or S.A. or I.K.E.
The people with whom you intend to work may influence your decision. For example, there are people who wish to work with limited liability companies and are sceptical about other forms of companies, e.g. personal companies.
Tax burdens or reliefs may be a determining factor in your choice. Certain types of favourable treatment apply only to Limited Liability Companies or S.A.
These are some of the criteria on the basis of which you can choose a legal form for the establishment of a company, but it would also be useful to seek the professional help of an adviser before making your final decision. Bear in mind, however, that choosing the legal form of your business does not bind you indefinitely. You can change legal form in the future, following the appropriate procedures, if you consider that this is more advantageous for you.
