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How do I choose the best legal structure for my business?

When starting a business, the choice of legal structure is one of the most difficult issues. Only regulated activities avoid this question, as the legal status is imposed by law. However, by studying each essential element of your future business, you should easily find the most appropriate legal status.

Most entrepreneurs who decide to set up a business need to consider a number of key issues:

- The number of partners

- The protection of assets

- The addition of legal clauses (approval clause, exclusion clause, inalienability clause, etc.)

- The social regime of the manager

- The company’s tax regime (income tax or corporation tax)

The first question to ask is therefore that of the association. Indeed, the legal structure depends above all on the number of individuals who wish to join together and participate in the project.

Thus, a person setting up a business alone can choose one of these structures:

- Sole proprietorship

- Sole proprietorship with limited liability

- One-man business with limited liability

- Single-member simplified joint stock company

However, in the context of a startup, several individuals usually choose to join forces. The most suitable structure is therefore a multi-person company. It is then necessary to choose between:

- The limited liability company (LTD)

- The simplified joint stock company

- Or the public limited company (PLC)

Of these three possibilities, most startups opt for the simplified joint stock company. This is because it operates via shares and offers flexibility in drafting the articles of association. This is important in order to maintain a high degree of agility. Furthermore, this flexibility extends to share classes or shareholder voting rights. All these elements are very relevant for a fluid project like a startup.

What tools can help me ensure 100% compliance in my business activities?

When launching a startup, it is impossible to set up a legal department. For this reason, to access quality legal information or get answers to legal questions you may have, you cannot only rely on ad hoc legal support.

However, legal compliance is essential to the success and, above all, the long-term survival of your company. Non-compliant products or services can range from a simple cancellation of the sale to more serious risks. Similarly, invoices and quotations must be legally compliant. For all these reasons, acquiring tools that help ensure the compliance of your business activities is an asset for your company.

Qonto

As a bank for professionals, Qonto supports startups at all times. For example, when you set up your company, this bank helps you draw up your articles of association, offers you a 100% online capital deposit, and allows you to finalize the registration of your startup via online registration and the deposit of your KBIS. On a day-to-day basis, you can centralize your financial flows in one place, automate certain actions such as adding VAT, and digitize your supporting documents. Finally, in case of problems, the Qonto team is at your disposal to provide you with legal or administrative advice in a few minutes. This banking offer is therefore complete and allows you to manage your company’s finances soundly and efficiently.

Stripe Atlas

Don’t know where to start with your startup? Stripe Atlas is there for you. This platform will guide you through the entire process of creating your business. You can be guided through the process of creating a legal entity in a matter of minutes. The Stripe Atlas team takes care of the administrative complexities and helps you launch your business in a few days. This legal solution allows you to issue shares, centralize invoicing, and offers access to practical advice afterwards. For all these reasons, starting a business becomes much easier with this software.

Captain Contrat

Administrative and legal procedures can be a real difficulty when setting up a company. This is why Captain Contrat offers its expertise online. So that you can concentrate on the development and growth of your company, Captain Contrat is there for all your needs: creation of closure of a company, registration of a trademark, commercial contracts, subcontracting contracts, reminders of deadlines, or even compliance reports. In addition, for any additional questions, you can contact lawyers or experts who will answer your questions and assist you in your procedures.

How do I register my startup?

Registering a startup is a fundamental act. It officially gives birth to your company and gives it a legal personality.

First of all, you need to draw up articles of association. In a way, they can be compared to a constitution for a country. It will therefore lay the foundations of the company for years to come, although they can be amended if necessary later on. This is a complex step. For this reason, it is best to be accompanied by a legal professional. The corporate form of the company will be one of the key points to be defined.

The second step is the publication of the articles of association. This step requires the publication of an announcement in a legal gazette. This makes it possible to inform third parties of the various stages in the life of a company, such as the creation of the company, its liquidation, or the change of its directors.

Finally, once the articles of association have been drafted, adopted at the general meeting, and published, you will still have to fill in a specific form. For example, in the case of a simplified joint stock company, this will be the CERFA M0. Various documents must be added to the file. Finally, this must be filed either at a business formalities center or at the commercial court registry.

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