What legal form do I give to my business?
When we decide to start a business, among other things, we must choose is the legal form we have to have. There are many conditions in the choice of one legal form or another, such as: the activity to be developed, the number of partners, the share capital, etc.
Depending on the activity: Sometimes, depending on the function of the activity, we are required to use a certain legal form. For example: if our business is an insurer, a venture capital company, a leasing company ... we must necessarily create a public limited company.
Depending on our responsibility: in front of others we can choose between a company in which this responsibility is limited to the capital contributed (limited companies, limited companies ...) or that is unlimited, so it affects both our business assets and personnel (autonomous, civil society and community of assets).
Depending on the cost of incorporation: Unlike a commercial company, in civil societies, the cost is lower; In addition, it is not necessary to register in any public registry, nor what they formalize in a private document, nor is there the obligation of any minimum share capital.
As regards the tax burden on civil societies, an income tax rate is applied in the personal income tax as the benefits increase. On the contrary, a fixed rate of 30% or 35% is applied to the Corporate Tax according to the selected benefits.