Some embark on the entrepreneurial adventure as freelancers and others who prefer to form companies, of one of the different types our legal system contemplates. The legal person is different from its members and constitutes a body endowed, under the conditions provided by law, with a differentiated legal personality, which makes it responsible for its actions and recognizes the obligations of the shareholders, which are not limited in all cases—your responsibility to the original capital outlay.
What can societies do?
The legal person has a differentiated existence, independent of its members or shareholders, owns assets in its name, acquires rights, assumes obligations and responsibilities, signs contracts and agreements, and can be sued or initiate legal proceedings, as a natural person could. . A legal person also has a name, and address, existence and properties.
Each type of company that exists has its advantages and disadvantages and is subject to clearly defined laws and regulations. Choosing the proper legal structure is of great importance at the time of incorporation, as this can avoid problems in the future.
How do you choose between the different types of companies that exist?
To choose the appropriate legal personality for the business, it is first advisable to try to understand all the elements related to the benefits of some rights concerning the legal person and their disadvantages, those derived from the obligations or restrictions that each election can impose.
Among the main drawbacks of some types of companies are those that have to do with:
- Social capital. In some cases, the requirement for the constitution may seem too high.
- A minimum number of partners. There are times when the company may be a sole proprietorship, but other times it will be required that initially there are at least three people, as is the case of the cooperative or labour society.
- Responsibility of the partners. The best option is to choose a model of society in which it is limited. In this way, it is avoided to respond with the own patrimony.
- Taxation. Remember that you will have to contribute to corporation tax, although the effective rate will vary.
- Limits to the number of workers. In the labour society, for example, it will be limited, while, in the anonymous or limited company, there are no restrictions in this regard.
Some companies incorporated are limited liability companies or limited partnerships. The collective, cooperative, civil, professional or limited society are other legal form options, perhaps less popular, but that can also work for those who want to launch their business project.