Forms of Business Organization
The large size of the enterprise and the large authorized capital allows the company to purchase expensive equipment, hire more highly qualified personnel, and order more expensive advertising. There are more opportunities for specialization of labor, and, in addition, the company can organize waste disposal, some of which can be used to create by-products. This form is stable and reliable, so it is easier for her to get a loan.
The complexity and high cost of opening, the complexity of management, the likelihood of "dilution" of property rights due to the issue of new shares, as well as double taxation.
The choice of the form of organization of your business directly depends on your vision and goals. First, answer the following questions:
What is your exit strategy?
Become an open company?
Sell shares to private investors? Etc.
The answers will help you decide on the most appropriate form of business structure. Must remember - the ideal form of business organization does not exist.
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