Give priority to partnership enterprises
Typical scenarios: Light-asset service categories (such as design studios, consulting companies)
Core advantages: Low tax burden (the comprehensive tax rate can be as low as 5%-35%), flexible profit distribution
Risk Warning: GP may need to use personal assets to repay debts. This is suitable for teams with extremely high trust
Recommended priority responsibility companies:
Typical scenarios: Small and medium-sized physical entrepreneurship (catering, retail, technology startups)
Core advantages: Risk isolation + flexible management, suitable for 90% of first-time entrepreneurs
Note: Avoid 100% shareholding by spouses or relatives and friends, otherwise the limited liability protection may be lost
Select a joint stock limited company
Typical scenario: High-tech/manufacturing enterprises planning to raise funds and go public within 3 to 5 years
Core advantages: Facilitates equity incentives and attracts institutional investment
Cost reminder: The annual audit and compliance costs are relatively high. Small teams should choose with caution
Please check the list of key decision-making elements!
Risk tolerance
If the project risk is high (such as in foreign trade or engineering), it is preferred to choose a limited liability company to isolate the risk
Expected profit scale
Annual profit ≤ 655,000 yuan: The tax rate for partnership enterprises is lower than 25%
3 million > annual profit > 655,000: The company system is more advantageous (the tax rate for small and micro enterprises can be as low as 5%)
3 million < annual profit: Partnership enterprises are more favorable (excluding specific tax rate preferences such as high-tech enterprises)
Demand for control rights
The founder must have absolute control: A limited liability company can stipulate through its articles of association that the same shares have different voting rights
Exit planning
Planned acquisition: The equity structure of corporate enterprises is more recognized by the capital market
Reference to Typical Cases
Case 1 (Partnership Enterprise
Four people jointly founded a design studio:
By choosing a limited partnership, the GP (chief designer) holds 70% of the dividend rights, while the LP (investor) enjoys a fixed annual return of 10%. Save corporate income tax, with an annual tax savings of approximately 150,000 yuan.
Case 2 (Limited Liability Company)
Four person tech startup team
Set up a shareholding platform to reserve a 20% option pool and stipulate the valuation of technical equity investment through agreements. After obtaining angel round financing, it was successfully transformed into a joint stock company.
What operation suggestions do you have?
Initial stage: First, use a limited liability company to reduce the cost of trial and error, and simultaneously establish a shareholding structure
Before financing: Plan for shareholding reform two years in advance (for a limited liability company to become a joint stock company, an audit and assessment are required)
Tax compliance: Partnership enterprises must ensure that all partners provide tax payment certificates to avoid inspection risks
The essence of choosing an enterprise form is a decision to balance risks, control rights, tax burdens and financing needs. It is recommended that entrepreneurs, in light of the industry characteristics and the three-year plan, give priority to the limited liability system. Once the business is mature, they can then adjust through agreements or upgrade through shareholding reform.
