This is a comparison of the different business models I considered for creating my company, Info360, and why I chose the Limited Liability Company (LLC).
autonomous
This model is when a single person creates a business and is responsible for everything. The good part is that it’s very easy to get started and you don’t need to invest a lot of money. But he has a big drawback: if there are debts, he has to pay them with his personal assets. This is a very big risk.
Civil Society
It is an agreement between two or more people who want to work together. It’s flexible and cheap to get started. But it has a problem: if the company has debts, the partners also respond with their personal assets. This makes me feel insecure.
Joint Stock Company (JSC)
This model is for large companies. A minimum capital of 60,000 euros is needed. The positive part is that it gives prestige and makes it possible to get many investors. But it’s too expensive and complicated for me. It is not suitable for a small project like Info360.
Cooperative
It is a type of society where all partners work together and have the same decision-making power. It is very supportive and democratic. But for a technology project like mine, it can be slow to make decisions and impractical.
Limited Liability Company (SL) – Our model
The SL is the best option for me. The minimum capital is 3,000 euros, an amount I already have. Partners are only liable for the money they have invested, not their personal assets. It allows me to be multiple partners and divide tasks clearly. In addition, it is a flexible model and widely used by digital companies.
conclusion
After weighing all the options, I chose the Limited Liability Company (SL) because it is safe, flexible and perfect for a small business like mine. It doesn’t put my personal wealth at risk and allows me to start with an accessible investment. In addition, it gives me a professional structure to grow and gain the trust of my clients.