The private property of the entrepreneur`s spouse may be bound by express consent in a public document. SAS is the most common type of legal entity in Colombia and is popular in the business world for large and small companies. It has been praised by investors for its flexibility, particularly with regard to the incorporation process and the great freedom given to shareholders to set their own terms. A great advantage of the simplified joint-stock company is the possibility of converting the articles of association into a private document. Other important features that distinguish an SAS are: There is no legal difference between you and your business. This means that you, as the sole proprietor, are fully responsible for all activities related to your business. In addition, any loan you get under the DTA is technically granted to you rather than to a separate legal entity (meaning you can`t create a trade credit history, only in person). The most common legal structures are sole proprietorships, partnerships, limited liability companies, corporations and cooperatives. It has no specific legal regulations and is subject in its commercial activities to the general provisions of the Commercial Code in commercial matters and the provisions of the Civil Code on rights and obligations.

In general, no minimum capital contribution is required for the creation of a commercial company, as it is constituted by partners or members. After the liquidation of the company or the reduction of capital, foreign investments can easily be repatriated. In addition, if certain capital requirements are met, investors can apply for a migrant visa. The main steps to starting a business in Colombia include: A sole proprietorship is a type of business whose benefits include: There are two types of limited partnerships: In addition, all corporate profits and losses are also reported as corporate income tax. However, members of an LLC are considered self-employed and must pay self-employment tax on Medicare and Social Security. If your business consists of a few members who want to protect their assets and are at high risk of litigation, this might be the right choice. The pros and cons of an LLC are as follows: If you have a small business, you may think it`s not necessary yet, or you may not consider a situation that requires a communication plan or strategy. Often, entrepreneurs do not attach importance to a The types of companies / legal forms that we can use are: A company has its own legal rights, regardless of its owners: it can sue, be sued, own and sell property and sell property rights in the form of shares. Unlike an LLC, upfront and ongoing costs (such as labor) are higher in a business. The company is the most complex and difficult business structure to achieve. There are a few variations of the company, which we will look at below: It is a society formed by people who associate themselves with a democratic structure and function to conduct business activities. It is within commercial enterprises and has a personalistic character.

It operates under a collective name or company name in which all partners participate equally. Among the partners, it is possible to distinguish two types, the one that brings goods to society, which is called the „capitalist partner“, and the one that brings industry (jobs, services or activity in general) to the „industrial partner“. It can be cheaper, because it does not create a different legal entity from the entrepreneur himself. There can be two types of sole proprietorship: the management of a company is more bureaucratic because it is used by companies with a large number of employees, one of the main disadvantages being that the share capital consists of shares and leads to some bureaucratic difficulties in case of transfer to another person. If the entrepreneur is married, his activities can reach the other spouse, depending on the type of property. Business spouses` assets are linked to the results of the business activity, while joint property may be linked by express consent or by presence and consent. Compared to other forms of enterprise, sole proprietorships have the following disadvantages: countries choose different ways of organising the legal structure of business life. Therefore, you should contact your local authority to find out how your country organizes the business. The most common and simplest legal structure is a business with a single owner. The owner and the business are the same unit when they pay taxes. Corporate profits are personal gains and are taxed as personal income. B Corp is a for-profit corporation where shareholders hold the corporation responsible for generating some form of public benefit in addition to financial gain.

B companies differ from C corporations in purpose, accountability and transparency, but they do not differ in the way they are taxed. Choosing the right business structure is crucial if you want to consolidate long-term and growing processes. The nature of the business affects many areas of your business in terms of taxes, local or national legislation, financial and personal responsibilities. Consult a trusted lawyer or accountant before taking the first steps to register your business. What is the best legal structure for your small business? The legal structure is how the company is organized from a financial point of view. It is very important to choose the best legal form, as it affects all aspects of your business: day-to-day operations, payment of state and federal taxes, and personal financial risk or liability.