There will always be a debate of the benefits and problems of creating a legal entrepreneurship. In some countries there are conditions that seek illegal, or at least informal entrepreneurships. In An Entrepreneur Blog we believe legality is the way to go, as it brings many benefits for our projects and also to our country and local economy. However, most legislations are not perfect and there will always be elements that can be better.
In this article I wanted to introduce some elements that every legal entrepreneurship and its management team should take into account. This elements change from country to country, and even from state to state. The idea is have some general guidelines that you can modify according to the legislation in your area.
The first element we have to consider is the legal entities we are going to create. This can be just one entity or several, depending on our objectives and the law. For instance, for this Blog and other several projects, we created just one legal entity, because the law allows it. In the future we might decide to create additional entities, if the circumstances call for this action.
In order to create these entities, we have to do several steps, which are required by law, and this changes in every legislation. I recommend you get advice from people that know about these subjects, so you don’t make any mistake. In some legislations the steps might be very easy and straightforward, but in others they might be quite complex, expensive and require a lot of time.
The second elements, which can become the most important, is knowing the additional steps that we have to do when we created the legal entity. To start, we have to appoint people to some positions, such as the CEO, an accountant and more; again, this depends on the laws and bylaws that we must follow. Besides these positions we also have to know what compromises we have acquired, such as paying taxes. This is a crucial and key element, as many entrepreneurs make mistakes that at the end can implicate an economic sanction. So please be very careful and get proper advice.
A third element, which is complement to the previous two, is permits we need to make our business work. For instance if your importing or exporting some type of product, you might be require by law to file a permit. In many cases there are companies that can help with this permits, although they might require a payment. However, this might be the easiest way to accomplish this.
There are additional elements, but for the time being I want to end this post with a very important recommendation. In many countries the laws regarding entrepreneurship, taxes, permits and more, change frequently. Our job is to keep updated with these changes, as not knowing many times is not a valid excuse. Is better to keep up to date with all these changes, than to pay a sanction for not knowing something.
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