If you are starting an individual business and all its affairs are managed by you and utterly dependent on you, it is better to look at the sole proprietorship model. Many jobs depend only on the skill and knowledge of the individual owner, cannot develop, and on the other hand, their capacity to generate income is also limited. Jobs such as programming, writing, website design, etc., are considered such jobs.

Does your business need the help and cooperation of several people to run it? Or is your business a project?

In this case, it might be better for you to use the partnership model. Regardless of the headache of creating and managing a company, just be busy with your work and share as much as your earned income. In terms of taxes, you declare your income annually through your statement.

How much risk do you accept?

If you are a risk-averse person or your business is high-risk. The inability to repay debts and obligations created is a significant risk that can cause many problems for you and your business. In general, the corporate structure in such cases is more capable of protecting you against these risks. It is better to consider registering and managing your business by creating a company.

Is the income from your business significant?

If your business is successful enough to make a good profit, creating a company is the best way to manage your taxes. If your company is profitable, you can use the funds from your business to invest and develop your business instead of paying a high tax rate.

Can your business grow? If yes, how far and to what extent will it grow?

Spending on a scale is an important principle. Suppose your business generates annual income within one employee’s salary limits, and you need a plan or the possibility of expanding your work due to its nature. In that case, it is better not to start a company. But if your business can grow and develop, the company can be a suitable structure for your activity.

To enter a business, you need more information. Here we try only to familiarize you with the essential business creation concepts. After getting to know the business, one of the first steps is to prepare a business plan for the desired company.

If you have any suggestions or questions regarding the mentioned items, you can share them with us via email or phone.