The question is: entrepreneurship or a limited liability company

The question is: entrepreneurship or a limited liability company

The dilemma that individuals face in terms of starting their own business comes down to whether to organize it in the form of an entrepreneurship or a limited liability company (Ltd.).

The initial comparative differences between these two forms should primarily be observed through the responsibility of their founder, since the entrepreneur is responsible indefinitely with his private property, while in the form of Ltd. corresponds only to the amount of the entered share.

However, the form of entrepreneurs has its advantages primarily in terms of simplicity, less formalism, as well as tax benefits.

The essential conclusion comes down to the fact that, in the beginning, people are more likely to opt for the form of entrepreneurship, which as such has its limitations and which, with the growth of workload, must move to Ltd. as a more complex form that can more adequately respond to challenges which increased workload and profit brings. Especially with the challenges of bookkeeping and tax reporting that come with increased profits.

In that sense, the law of the Republic of Serbia offers the possibility to move from the form of an entrepreneur to the form of a limited liability company, but what every beginner must keep in mind is that we must observe these two forms through the basic regularity of every business, that there is no high profit without a certain degree of risk.

MPartners Legal team is at your disposal and ready to tackle all the issues related to this dilemma, as well as the challenges faced by those who have ambitions to start their businesses.

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