There are quite a few types of companies that allow us to have a legal entity with which to act. Companies have some advantages, such as better tax treatments to be able to operate in a professional field
Sole proprietorships are a type of one-person business and are financed:
- Contribution of the owner, of own resources that is declared as sole proprietorship
- Owner”s contribution by bank loan. Which means that the owner does not have its own capital, its liability is made up of an Obligation, that is, its capital belongs to third parties.
Limited liability companies
In this type of companies their financing is given by the contributions of the partners, they are called “CAPITAL FEES.” According to the commercial code, it must be Bs. 100 or multiples of 100. This form of financing also has its own characteristics and a series of rules that are described in the form of incorporating limited liability companies.
The financing of this type of company, which is one of the most common, is a very efficient way of raising capital to form large companies. The contributions are made up of contribution certificates that are called “CAPITAL SHARES” and that according to the Commercial Code have values of Bs. 100 or multiples of 100.
The responsibility for the directors is joint and several and of the contributing partners is only up to the limit of their contributions.
It is also applicable to small companies because it allows the formation of the same with a form of long-term credit without banking pressure for repayments.
Its control requires a good organization and transparency in its management.
Liability is only up to the limit of actions.
Cooperative type societies
The main financing of a cooperative is through capital and reserves, it is also financed with national bank loans and resources that it attracts from the general public, through the various savings and investment instruments that it offers. All these financial resources are placed as a loan among its associates.
The NGOs can be financed from own funds, its affiliates or government aid. In summary, a non-profit association is a group of at least two or three people, who decide to put financial and material resources in common, in order to carry out an activity whose main objective is not personal enrichment. The disinterested nature of the activity prevents the distribution of benefits to the associates, not even in the event of dissolution, although it does not necessarily imply that the activity is non-commercial, or that it has to be deficient.
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