How to choose between the different types of business entities? There are four types of business entities: business, company, limited liability partnership, and limited partnership. Let us start with the simplest form, which is a business. A business can be a sole proprietorship with one owner or a partnership consisting of two to 20 owners. Business owners are personally liable for the debts and losses of the business. This is known as unlimited liability. Next, let us look at a company. A company usually has the words Pte Ltd or Ltd as part of its name. One of the advantages of owning a company is that the shareholders have limited liability. This means that they are not personally liable for the debts and losses of the company. For the two partnerships, let us see how they differ. For limited liability partnership or LLP, it is a partnership with a minimum of two partners and they have limited liability. In a limited partnership or LP, there needs to be a general partner and a limited partner. While the general partner is personally liable for the debts and losses of the LP, the limited partner enjoys limited liability. Now that we have gone through the different entities, ask yourself the following questions: Would you like to own the business by yourself or together with other people? How much capital are you prepared to invest? Are you able to finance your business solely or do you need financing from other persons? Would you prefer limited or unlimited liability? If you're finally ready to decide on an entity, make sure to adhere to the following rules: You are at least 18 years old. All business entities must have at least one person who is residing in Singapore. For business LLP and LP, there is a requirement that the...
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Video instructions and help with filling out and completing Who Form 8655 Entity
