Starting your Business, Entrepreneurship, Start Up or Mid-size corporation?
Today, more people convert their ideas into a reality through the generation of ventures. However as brilliant yours may be, if it is not framed within a clear planning, it will remain only like that, an idea. We are not referring to generating complex and expensive company structures, but to the basic notions that as an entrepreneur you must know to maximize your results and avoid unnecessary expenses.
It is very important to choose the legal figure that applies to the business model you are developing. Many times, there are specific regulations that we must comply to exercise our activity without problems.
Then, you must choose the appropriate corporate instruments to carry out your venture. Do you want to operate as a natural person? Or do you prefer to incorporate a company? It all depends on the level of risk you want to face. You should be aware that the legal form you choose will affect the tax rate you deal, profit sharing, among others.
It is very likely that at the beginning of your venture you can not sustain a significant group of employees, so you should define the best ways of hiring in your Start Up. Initially, it may be better to maintain contracts for the provision of professional services, so that you do not assume labor-related obligations that tend to be somewhat complicated.
In Latin America and Ecuador for instance, ventures are normally carried out through the application of two legal vehicles, as a natural person or legal entity. Natural persons exercise rights and contract obligations in a personal way, that is, they assume directly, with all their assets, the responsibility for the obligations and debts generated by the enterprise. In the case of legal entities, it is the new company that assumes the rights and obligations, leaving the personal responsibility of partners and shareholders safe.
These are certain key aspects that every entrepreneur must take into account when starting to develop their idea in a formal way. These will help give more structure and will avoid many inconveniences along the way.
Our best advice, work smoothly with Your Strategic Partner, you could reach to the perfect recipe for your life business.
We are a team of strategic partners for your business. Legal professionals and advisors, duly specialized in several areas of law. We advise corporations and entrepreneurs with ethics and efficiency. We are not only lawyers; we are strategic partners with the required expertise to provide high quality services while being highly efficient and effective.
Come to the speed mentorship session and get the best advices for your business from our associate Nicole Olmedo.