Which legal form suits you best? Choosing the right form of business contributes to a successful start as a freelancer. This choice has consequences for liability and tax obligations, among other things.

In this article, we discuss six different legal forms for self-employed persons. Curious about a specific legal form? Then click on one of the links below to jump directly to that section.

• The sole proprietorship
• The general partnership (general partnership)

1. The sole proprietorship

The sole proprietorship has been the most popular legal form for starting entrepreneurs for many years. In this case, the company has only one owner: so more people can work for your sole proprietorship.

If you want to start your own business on your own now, but keep in mind that you want to hire staff someday, the sole proprietorship is still a good option.

Tax benefits of a sole proprietorship

The sole proprietorship is especially popular with starters, because it is usually quick and easy to set up. Registration in the Trade Register of the Chamber of Commerce (KvK) is sufficient.

In addition, as a single person you are eligible for various tax benefits, such as the self-employed person’s allowance and SME profit exemption . As a starter you are also entitled to the starter allowance .

Liability sole proprietorship

What is important to remember is that as the owner of a sole proprietorship you will be jointly and severally liable for any debts.

This means that these costs can soon be recovered from your private assets and that can result in you losing your owner-occupied home and inventory to the creditors.

In a sole proprietorship, there is no legal distinction between your private and business assets. Always discuss the risks with your partner first and consult a financial advisor.

In certain cases it may be advisable to draw up a prenuptial agreement in which you have the consequences of a possible bankruptcy included.

2. The general partnership (general partnership)

Do you want to set up a company with someone else? Then the legal form of general partnership (usually abbreviated to general partnership) may be a good choice. The incorporation requirements are quite simple, just as with a sole proprietorship.

It is true that all owners (the so-called partners) must contribute something to the company. Usually this is a sum of money, but you can also think of working hours, for example.

The partnership contract

It is not mandatory to draw up a so-called company contract, but such a legal document is a good way to record the agreements made with the other partners in writing.

This includes decisions in the area of ​​responsibilities and authorities, but also, for example, profit distribution.

With such a contract in place, there can be no uncertainty about the agreements made in the event of a possible future conflict .

Liability vof

Keep in mind that you and your business partner (s) can also be held jointly and severally liable for the debts incurred at a general partnership. It does not matter which of the partners caused these financial problems.

Although the creditors will initially recover the debt from the company assets, your private assets – and those of the other partners – could be endangered if those initial proceeds are insufficient.

Just as with a sole proprietorship, drawing up a prenuptial agreement can therefore also be relevant here. Ask a civil-law notary about the options and conditions.…

Read More

An excellent idea and a good budget are no longer sufficient for start-up success. In the best case, the company grows very quickly, and new employees join the team. Many startups are overwhelmed by this rapid growth and the many structural changes. Or the founders are initially so focused on financing and developing the start-up that the company rarely has established structures at the end of the seed phase.

1. ” We are unique ”

” We provide the best product on the market ” – this statement is enough today as a unique selling point to stand out from the competition. The vision of a company has to be stable for several years and keep its substance as the trends and technological innovations keep going up and down. A clear formulation of the vision is also the basis of a good objective. It is, therefore, advisable to draw up a mission vision statement.

2. Create clear goals

The next step is to combine both the mission statement and the vision with the here and now and formulate specific goals for different periods. Without this clear objective, the start-up quickly loses focus. A clearly defined goal is one of the strongest success tools.

3. ” What I don’t know makes me hot ”

An important task initially, which is difficult for many young entrepreneurs, is to become aware of their weaknesses and limits. This is the only way that a founder can identify a need for improvement and seek external help, for example, through external service providers and other team members, and thus expand the company’s know-how. Very few founders can or know everything immediately. Getting help is not only important but also necessary.

4. ” Nobody is perfect, but a team can be ”

There is no one perfect founder or employee who is, at the same time, super organized and creative, humorous and serious, personable, but also respectable, dynamic, and patient, able to speak and listen well. No one can combine all of these skills. The right team-building measures show and strengthen the different potentials and talents of each team member. A good relationship between employees also promotes the working atmosphere.

5. Clear roles and positions in the team

The correct allocation of roles in the team is one of the most important factors for the company’s success. If there is no clear statement about who is responsible for what, inefficient discussions often arise that hinder productive work. Employees can only identify with the company if they are connected to the task. A good role allocation has a positive effect on cooperation. It is also important to develop a mutual understanding.

6. Modern leadership skills

Many managers are interested in leading and encouraging their employees well. However, they often lack essential and contemporary skills. Old management and work styles are counterproductive, especially in the start-up world. Generation Y no longer just wants to work to make money but to experience the meaning of work. Accordingly, the focus of executive coaching is generally on strengthening your communication. The keywords are active listening and clear and constructive speaking. Added to this are time management, responsible leadership, and the reflection of the inner attitude, all characteristics of a competent leader.

7. Appreciative corporate culture

Now it is time to combine all measures. Creativity, performance, and motivation cannot be bought, let alone monitor. So if you are looking for this in your team, you have to create the right framework for it. In a beneficial corporate culture, everyone works towards a common goal. Everyone has a clear task, position, or expectation of what is required of them. Problem-solving thinking is encouraged, and there is a constructive culture of criticism. Flexible, contemporary process flows consciously shape the corporate culture. It is important to stay in the flow of change and keep the structures flexible to cope with the constantly changing requirements.…

Read More