Different corporate forms of companies

When you want to start a business, ask yourself the question of the appropriate legal form for the business. This question also arises if you want to outsource a business operation from your existing company.

In principle, you can choose between the legal forms of the natural person, the sole proprietorship, the partnership and the corporation. All four forms have their specific advantages and disadvantages.

The choice of legal form is usually made for (liability) legal or tax reasons. However, access to capital also plays a role in the choice of legal form. At this point, it is expressly pointed out that neither legal nor tax advice is given within the scope of this consulting-check application.

Over time, companies change, the opportunities and risks associated with them change, and the goals you pursue with companies may change as well. Companies grow, change their business models, are divided or shrink. Shareholder structures can also change. For many reasons, it makes sense to occasionally reflect on whether the current corporate form is still the most appropriate one.


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