Posted by The first issue to be resolved is the legal form in which you will conduct your business. A company in the form of an individual business does not necessarily mean operating alone, but it does impose certain ways of signing contracts, hiring employees, accounting for taxes.
You have an idea for a business. You know that he should draw up a sound business plan before setting it up. Even if you won’t have to submit it to any financial institutions, a business plan will help you understand what the opportunities and difficulties are in bringing your idea to life.
The first issue you need to resolve is the legal form in which you will conduct your business. If you do not have a reliable neighbor, and your wife does not intend to enter into partnerships in addition to marriage, she must register a sole proprietorship. Running a business alone does not necessarily mean acting alone, but it does impose certain ways of signing contracts, hiring employees, accounting for taxes.
When deciding on a form of business, it is also worth considering whether you can handle all the responsibilities that come with creating a company yourself. This is mainly about the time you can devote to starting the business, knowledge of the industry in which the company will operate and organizational skills. Operating alone imposes certain limitations that are difficult to overcome. If Jan Nowak and his neighbor have one idea each for the company’s product and want to act together and exchange knowledge, they have a total of 4 ideas, 2 each. However, if they both decide to act independently, each of them has only one idea in his head and it will be difficult for them to multiply it. The more people there are, the number of issues that can be solved at the same time increases, and the number of people who can help with the venture increases dramatically.
However, you should not exaggerate the number of friends who will participate in running the business. The more partners you have, the lower the monthly profits per partner will be. Therefore, the number of partners should be appropriate – on the one hand, allowing the company to run its normal operations, and on the other hand, limited to those who are really necessary.
In summary, you have two options: either you will operate as a sole proprietorship run by an individual (he can, of course, hire employees, but the business is run by himself, in his own name and at his own risk) or you will form a company.