How to choose the best business structure for your needs?
Number of Owners
Control over the Business
Level of Liability
Company Formation and Administration Costs
Ability to Raise Capital
Credibility & Reliability
Major Business Structures Compared
|Business structures||Sole Proprietership||Partnership||Corporation||LLC|
|Is the business structure single person owned?||Yes||No||No||No||No||No|
|Do I get complete operational control?||Yes||Yes, shared among partners||No||No||No||No|
|Is the business ideal for shops, home businesses and local shops?||Yes||Yes||No||No||No||No|
|Do I get all the profits without business tax? (pass-through taxations)||Yes||Yes, shared among partners||Yes, Shared among partners||No||Yes||Yes|
|Are my personal assets at risk for the business debt?||Yes||Yes||No||No||No||No|
|Can you employ staff, expand business into new locations?||Yes||Yes||Yes||Yes||Yes||Yes|
|Can I get paid an wage/compensation for involvement in the business?||No||No||Yes||Yes||Yes||Yes|
|Do I have to pay corporate tax?||No||No||No||Yes||No (might vary with jurisdiction)||No|
|Do I get an option to split income for reduced Income tax?||No||Yes||Yes||Yes||Yes||Yes|
|Is the business setup process complex and costly?||No||No||yes||Yes||yes||Yes|
|Do I have to maintain, audit & submit complext account statement?||No||No||Yes||Yes||Yes||Yes|
|Is it easy to raise capital through venture capital, investers and public listing?||No||No||No||Yes||No||No|
|Is the business suitable for high risk business?||No||No||Yes||Yes||Yes||Yes|
|Is this ideal for rapid growth and expansion across jurisdiction?||No||No||No||Yes||Yes||Yes|
|Can I change legal structure in the future, easily?||Yes||No||No||No||No||No|
|Can the company benefit from unique industry base tax benefits? (like EV tax benefits)||No||No||No||Yes||Yes||Yes|
Business Structures Vs Nature of the Business.
|Ideal for||Sole proprietership||Partnership||Corporation||LLC|
|Owners||1||2 to 9||More than 10||Unlimited||Less than 100||Unlimited|
|Growth and expansion||Very less||Very less||Intermediate||Fast||Fast||Intermediate|
We help you further reduce the tax by suggesting ideal tax-free zones for your company. For instance, you can save upto 20% of your running cost just by opening your company in one of UAE’s freezone. Ask how? Free zone companies aren’t charged any tax on import and export. The only tax your company has to pay is the 5% VAT that is comparatively less than most tax free zones around the world, which is why Dubai is a heaven for D2C businesses.
Want to find the best company structure and financial structure for your company? Quick, book your free consultation call here.