5 Business Entities Suitable for Your Blogging Business
Successful blogging strategies will often include a business savvy side. It is useful to know how you can set-up a legal entity that will be suitable for the type of business you are developing. Choosing the best legal structure will depend on a number of factors, including your plans for a future expansion or the available budget. Below, our experts discuss some suitable business forms for bloggers.
1. The sole proprietorship
This is the simplest business form, with very low incorporation costs and low accounting and management requirements. Bloggers can exchange their business and personal assets by using this legal form but they will be liable for the company’s debts and obligations.
The requirements for setting up a sole proprietorship are similar in many European countries, however if we compare the process of setting up a sole trader in Ireland with the same process in Estonia, there could appear small differences in terms of fees and other administrative aspects. This is why it is recommended to ask for professional help from a local team of company formation experts.
2. The partnership
Two bloggers who share the same niche, business goals and the desire to split profits can form a general partnership. The distinction between the personal and business assets is similar to that of the sole proprietorship but this is another business form that is advantageous because of its low incorporation and maintenance costs.
3. The limited partnership
Although similar to the general partnership, this business form allows for an important distinction: the partners are not liable for the obligations and liabilities of the business. In some jurisdictions however, one of the partners will be treated as a general one while the other will have limited liability. All partners may contribute in cash or in kind.
4. The limited liability company
The limited liability company is a widely popular business choice. This corporate structure grants a high degree of flexibility to its owners. It has different accounting and reporting requirements and it must be registered as per the company registration laws in the chosen jurisdiction.
5. The public company
This business type is more suitable for those bloggers who have already become established in their field and are looking for a means of expansion. Like the private limited liability company, this business entity is separate from its founders.
These business forms are generally accepted ones, found in most countries. However, several differences may apply in terms of advantages for investors and the corporate taxation, depending on where you choose to set-up a company. We will analyse two popular business destinations in Asia: Hong Kong and Singapore. Bloggers can form a company in Hong Kong and start their activities within a couple of days if all documents are in order. The sole proprietorship in China’s Special Administrative Region requires no minimum share capital. Another example is Singapore, which, much like Hong Kong is known for its low taxes and friendly business regime. A team of Singapore company incorporation experts can tell you more about the taxes and requirements for a sole proprietorship here.
Choosing the right type of company is an important step for any business owner, bloggers included. This will determine how you will be liable for the actions of the company and how the legal entity will be taxed.