Choosing The Best Business Model For Your Firm
If you get an invitation to go to a party, the first thing you start considering is what you are going to wear. If you are going alone, you will choose whatever outfit you like to wear depending on the type of the party. If it is a themed party you have to dress according to that. If you are going as a couple, you have to decide what to wear as a couple. You can get matching clothes that will show that you are couple. As you can see, even when going to a party you have to consider the circumstances if you want your presence to be felt.
Even when you are thinking about starting a business of your own, you need to decide what type of a firm it is going to be. It can be a business run by just you or a business run by you and another person or few other persons. Or you could choose to run a business that has become an incorporated business through Singapore company incorporation process. Let us see what each category actually entails.
Sole proprietorship or sole ownership means there is just one owner for the business. In this business model, if you are the owner you own the firm alone. That means all the profit and income belongs to you. At the same time, that means you are also responsible for all the liabilities. This type of businesses can be easily registered since the ownership is limited to one person. However, that same advantage can become a disadvantage when the business has debt that needs to be paid. Even though the firm does not earn enough income to pay this debt the owner ends up having to pay this debt using his or her personal assets as under this business model the firm and the owner are both identified as the same entity.
In a partnership, two or several people get together to run a business. They share the profits and the responsibilities of debt of the company and the fellow partners.
An incorporated business is the safest business model which establishes the business as a separate entity form the owner. Therefore, the owner is not responsible for the firm’s debt. Also, this form of firm can last for a long time. It also offers an opportunity to find capital easily by selling stock. Also, if you have doubts about incorporating your firm you can hire one of the company incorporation services that also offer mail handling services to complete that task for you.
Once you choose one of the business models mentioned above you can go ahead and establish your firm.