Business and Justice

A company can be legally established as a natural person or legal entity. In other words, when we decided to formalize a business, we must choose if the operators in the form of individuals or in the form of legal person.

Natural Person
Natural Person is a human person exercising rights and fulfill personal obligations. When starting a business as an individual, the person takes a personal all rights and obligations of the company.

This implies that the person takes responsibility and guarantees all capital owned (the goods that are in your name), debts or obligations the company may incur.

If, for example, the company goes bankrupt and is forced to pay a debt, the person must take responsibility for her personal capacity, and failure to pay, your personal assets could be seized.

Advantages Natural Person
* The establishment of the company is quick and easy, no further proceedings, the documentation required is minimal.
* The establishment of the company did not require much investment, there is no need for further legal fees.
* Not required to carry and present as many records.
* If the company did not get the expected results, the line of business can be restated without any problem.
* Companies incorporated in the form of natural person may be liquidated or sold easily.
* The ownership and management control is vested in one person.
* You can enlarge or reduce the assets of the company without any restrictions.
* Eligible for more favorable conditions for the payment of taxes.

Disadvantages Natural Person
* Has unlimited liability, ie, the owner assumes unlimited liability for any debts or obligations that the company can get, which means that should guarantee the debts or liabilities to your estate or personal property.
* Capital limited only to what the owner can provide.
* Has fewer opportunities to access financial loans, banks or financial institutions are less willing to lend to individuals.
* Lack of continuity in case of incapacity of the owner.

Possibly Related Articles:

• Natural Person and Legal Person (II)
  Legal Person Legal person is a company that carries rights and obligations to meet its behalf. When starting a business as a legal person, is the company (not the owner) who assumes all rights and ...
• Business: the market of baby boomers
  We have some ideas about what are the most successful business for the foreseeable future. One of them is related to the baby boomers and the health industry and welfare, whose sales soon will exceed ...
• Traditional Business Ideas
  In Latin America one of the most sought after dishes people when they want to eat out is the Chinese rice recipe. This is because it tastes pretty good and is very economical. So a business idea is...
• Ideal For Real Estate Businesses
  The exclusivity agreement or brokerage is a document used practically in real estate. This is to acquire new customers or to achieve property. Today, our clients and new properties is a bit complic...
• Ideas To Make Money Business
  We are nearing the end of the year so a great business idea is to draw christmas ornaments. Through these we can achieve a good income and a rather simple way. The preparation christmas ornaments c...
• Format of Summary – Invoice To Customer
  In every company must have at least one quotation format, this is because people in most cases ask for a quote for various products or services. These contributions are usually do to find businesse...
• Types of Company
  Here we see a generic summary of the different types of businesses or companies can choose when legally establish a business: 1. Types of companies that can be as Natural Person When starting a ...
• Benefits and Disadvantages of Legal Person
  Benefits of Legal Person * Has limited liability, ie, the owner or owners of the company, assume only limited liability for the debts or obligations you may incur company, which will only be secure...

One Response to “Natural Person and Legal Person (I)”