The choice of the legal status of the company will depend on the formalities to be filled in the register of commerce, the tax system applied … This presupposes that it marks the beginning of the life of society from the administrative and legal point of view. In this case, its definition is made even before registering the company at the registry of the commercial court, that is to say before the drafting of the statutes.
The questions to ask
There is no perfect legal form, it depends on the nature one wants to give to one’s business, and of course its importance. Even if at first, choosing one’s status may seem complicated (for this reason many prefer to be under the tutelage of another society), it is not so. Solicitors in skelmersdale It is by taking into account the following parameters that one can choose the best legal form for his company.
The number of associates
Do we want to go it alone in this great adventure with the consequences that this would imply at the level of the decisions and the responsibilities as the only leader or will there be several partners to give life to a common project and to share capital as responsibilities?
In the first case, the entrepreneur can choose between the following legal statuses:
- Individual company
- Single Business with Limited Liability (EURL)
- Simplified Joint Stock Company (SASU)
- In the second case, it is possible to opt for the following forms:
- Limited company or SA
- Limited Liability Company or LLC
- Simplified Joint Stock Company or SAS
- Liberal Exercise Society
- Real estate company or SCI
Certain legal forms make it possible to preserve the personal patrimony in case of a debt of the company. If you have a property to transmit, it is advisable to choose the right legal form to avoid further hassle.
Constraints and financial needs
Depending on financial needs (working capital, cash, financing …), we can choose the most suitable status. Indeed, there are legal statutes where it is impossible to ask for funding..
Also, donors and partners such as banks, suppliers … give more credibility to certain legal forms.