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How to choose the most Suitable Legal Structure for your Business
An Idiot Guide’s for The A-Zs of Business in Singapore
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COMMON QUESTIONS WHEN STARTING A BUSINESS
1. Should the entrepreneur “go it alone”? — Absolute authority and total responsibility.
2. Should a partnership be established? — Easy to establish and pilot, but involves sharing management duties, profit and responsibilities.
3. Should a company/corporation be incorporated? — Offers a number of advantages (e.g. limited liability), but the downsides would be it is heavily regulated.
FACTORS IN DECISION MAKING
1. Type of Business Venture
2. Need for expertise, experience
3. Costs & Risks involved
4. Number & Relationship of persons involved in the business
5. Capital requirements
6. Borrowing Facilities
7. Profitability
8. Management control & duties
9. Disclosure requirements
10. Taxation liability — Personal Taxation vs Corporate Tax
11. Personal Liabilities
