Blog
How do you start a business?
The decision to start your own business is one of the key moments in the life of any future entrepreneur. The Polish market offers a variety of business forms, but the two most popular models are sole proprietorship and limited liability company. In the following article, we will discuss these two forms, their key differences and what steps you need to take to set them up.
Registration process
- One-person business - possibility to register through the portal https://biznes.gov.pl. The process is simplified, and a TIN is automatically assigned upon completion. The company can begin operations right away.
- Limited Liability Company - Registration is done through the S24 system, available at the following address https://ekrs.ms.gov.pl/s24/. Once the Articles of Incorporation are executed, and before it is made visible in the KRS (this can take from a few days, to a few weeks), we are dealing with a limited liability company in organization. A company in organization does not have a Tax Identification Number (although it can apply for one from the Tax Office, otherwise it will be automatically assigned at the same time as it is made visible in the KRS) and can operate in a limited capacity until it is made visible in the KRS and assigned a Tax Identification Number.
By registering a company online you speed up the entire process. It is worth noting that, in the case of companies, registration in the traditional way makes it impossible to make changes later, such as modifying the articles of association or changing the registered office, online. Any such issues must then be regulated traditionally, which is time-consuming and more expensive than changes made online via S24.
Consultation with experts
It is recommended to use the help of an accounting firm or tax advisor, especially for companies. Each change in the Articles of Incorporation involves a cost that is approximately 300 PLN, so consulting and choosing the right company structure can save us costs and time in the future.
In addition, choosing the right form of taxation, whether in a sole proprietorship or a partnership, can affect the minimization of the tax burden.
What form of business should I choose?
When considering the choice of business form, there are several issues to consider:
- Scale of business - companies are flexible in terms of development: it is easier to attract investors, list the company on the stock exchange or sell it in whole or in part, which is not possible with a sole proprietorship. It is worth noting that when the company is sold, all concluded agreements, rights and obligations remain unchanged, and the company functions as it did before the transaction.
- The cost and complexity of running - Running a company is more costly and complicated than a sole proprietorship. One of the first issues that a prospective entrepreneur must understand is the need to separate private capital from company capital and the consequences of doing so, which are not applicable to a sole proprietorship.
- Responsibility - In a company, liability for incurred obligations is limited. Nevertheless, in certain situations, board members may be liable with private assets. The key is to file for bankruptcy in a timely manner. In a sole proprietorship, on the other hand, one is liable with all personal assets.
- Protection of assets - in the case of a one-person business if you are married, it is worth considering the establishment of a separation of property (prenup) and the gift to the spouse/spouse of, for example, half of the property, which in practice, in an extreme situation, prevents the seizure of this part of the property. Information about the established property separation must be public - CEIDG/appropriate provisions in contracts with contractors.
Although sole proprietorship and limited liability company are the most popular forms of business, there are also many other less popular forms, such as civil partnership, joint-stock company, limited partnership and others. However, they are chosen by people who know very well what benefits a particular form brings and how to use it effectively.
What else is worth remembering?
There are many opportunities to obtain capital for business development, but the most noteworthy is a non-refundable grant from the Labor Office for those registered as unemployed. As of today, the grant can amount to a maximum of about 40 thousand zlotys, and the very process of obtaining these funds and the formalities involved are relatively uncomplicated and passable without the need for specialized consultants. Subsidized activity is often such an attractive offer that even people who have never before considered registering as unemployed opt for it
Summary
Choosing the right form of business is not only a matter of individual needs, but also of future plans and the scale of the business to be conducted. Regardless of the choice, it is crucial to prepare properly and consult with experts to avoid unforeseen difficulties or costs in the future.
Latest articles
Customer Journey w praktyce: Historia dwóch dróg do wirtualnego biura w Poznaniu Co łączy młodą projektantkę wnętrz i doświadczonego
Jak zwiększyć lojalność klientów wobec marki? Lojalność klienta napędza rozwój, chroni przed trudnymi czasami i buduje rozpoznawalność
5 kluczowych elementów skutecznej analizy konkurencji Czy wiesz, że aż 61% firm przyznaje się do braku regularnej analizy konkurencji? To
Increased frequency of mail pickup for Wroclaw We are happy to announce that Office31 Wroclaw now picks up mail three times a day
How to optimize business processes? Overview of automation tools In a dynamic business world, entrepreneurs are constantly looking for
Jak przygotować firmę na kryzys gospodarczy? Przygotowanie firmy na trudne czasy wymaga strategicznego podejścia, którego celem jest