Business structure for muses

[fduijts]

Ltd or a sole proprietorship? (In Holland a 'BV' or an 'eenmanszaak')

There are probably differences between an American Ltd and a Dutch BV. For example in Holland you need to deposit (about) 12,000.- euros before you can make a BV and I don't know if its similar in the states. However there are probably also simularities and therefore I'm posting the following question here and not on some Dutch forum.

What do you think is better, one legal identity for all your muses or individual legal identities for each muse separately? It implicates a difference for the chamber of commerce and your taxes. With one identity you have one company and with the individual identities all are individual companies and need to be registered as such. This also raises the question what to do if a muse dies out...

What's your point of view on this, what do you think is the best option; one legal identity for all your muses or individual legal identities for each muse?

[fduijts]

Nobody has any ideas about this...?

[Stallion]

12,000 euro deposit or fee??

In Canada/US, it's a standard $100, basic 24hrs to process.

Sole Proprietor = Unlimited liability, taxed as an individual, less paper work, less regulations
Ltd/Corporation/LLC = Limited Liability, taxed seperately(sometimes), more paper work, more regulations.

They both have ups and downs. Typically starting out you go with a sole proprietor because it's just easier. As you start to make more money and stuff, it is advised to go to Ltd(corporation) as there is ways to reduce your tax obligations.

I think Tim suggested LLC's and Americans have access to that. We don't. I think LLC's are rather painless to set up, where as a corporation is not.

Basically the benefit of incorporating is that liability is limited to the corporation. Meaning, if the corporation got sued, only assets owned by the corporation can be used for payment of liability. You'd just be a majority share holder, so your house and car, wouldn't be laible. Also there is the tax advantages.

If you look at a sole proprietor, if you get sued, your house, car, anything you own can be taken from you. But, it's a hell of a lot easier to set up and do taxes for.

I've created a sole proprietor before. They give you a sheet of paper, you fill in a few blanks( business name, address, phone number, what it does, signature, date), pay your $100 fee, 24hrs later you have a business.

If you do plan on incorporating, make sure you talk to lawyer.

[fduijts]

No it's not a fee. You just need to have that amount deposited in the bank account of the company you're setting up. I guess you're right and I should just start as a sole proprietor. What do you think is best, to do this for all muses separately or just make them under one company name?

[kamakiri]

In Japan it is 3 million Yen. Americans will have no clue what you are talking about because it is a completely different system. Whatever you choose will also have a ton to do with what your muse is, and how much you profit every year. 99% of the people starting muses have no need for anything over a sole prop structure. Talk to your banker they will have the best advice of anyone, and they are free.

[Sven]

Don't make it too complicated. Start an Eenmanszaak that developes web concepts. If one of those concepts takes of it may be worth while to turn that single concept in to a BV.

But as they say "1 bv is geen bv" you will be better of having 2 BV's (for tax reasons)

Having a (or the mentioned 2) BV's is only realy interesting if you make serious money. Concentrate on getting the muses up and running first.

Good luck!