Factors to Consider While Choosing a Business Type
1. Legal Existence:
For a startup, it’s best to first consider whether you want to start business under a legal entity or under your own name.
2. No. of persons Involved:
The second key factor for choosing the right type of company depends upon the number of persons involved in the initial stage of the startup.
3. Capital requirement:
Choosing the right type of company also depends upon the initial capital eligibility and future funds availability.
4. Funding requirements:
If in near future, funding is required in the startup, then it has to be planned in the initial stage of the business.
5. Restriction on Personal Liability:
It has to be decided in the initial stage whether the key persons are liable personally, or there should be any restriction.