How to Determine the Most Suitable Company Type for Your Business Nature and Your Relationship with Partners

Choosing the right type of company depends on several key factors related to the nature of your business activity, the number of partners, the amount of capital, and the level of trust and relationship among the partners. Below are practical steps to help you decide:

• If your business is small or individual, a sole proprietorship or one-person company is suitable.
• If your business requires significant investment or future expansion, a limited liability company (LLC) or joint stock company is a better option.

• If the partnership is based on trust and personal acquaintance, partnerships such as a general partnership or a simple limited partnership are appropriate, especially when partners know each other well and are willing to share unlimited liability.
• If the partnership includes unknown partners or external investors, LLCs or joint stock companies provide more legal protection and limited liability.

• If you have limited capital, partnerships or LLCs are often sufficient and do not require large investments.
• If your business requires large capital or aims to attract investors, joint stock companies or partnerships limited by shares are more suitable.

• If you want to protect your personal assets, choose an LLC or joint stock company, where liability is limited to your capital contributions.
• If you are comfortable sharing risks with your partners, partnerships (with unlimited liability) may work for you.

• For flexible and quick decision-making, partnerships offer more operational flexibility.
• For structured and transparent management, joint stock companies and LLCs provide clear governance systems.

• In partnerships, entry or exit of partners can be complicated due to the personal relationships involved.
• In LLCs and joint stock companies, it is usually easier to transfer ownership through shares or quotas.

• Consult a lawyer or legal advisor before making your final choice.
• Consider your long-term vision. Do you plan to expand, attract investors, or maintain control?
• Evaluate the nature of your relationship with potential partners. Is there complete trust, or do you need legal guarantees?
• Assess how much financial and legal risk you are prepared to take.

Each company type has its own advantages and disadvantages. Your decision should strike a balance between flexibility, legal protection, capital needs, and the dynamics of your business relationships. By aligning your business model with the appropriate legal structure, you can set your venture up for long-term