What are the different types of business?

Starting your own company can be incredibly tempting while still young and have the courage of life. However, there are a multitude of different types of business that it is worthwhile to get a handle on before you make the big leap.

Limited Liability Company

One of the companies that you can choose to create is a limited company, ie a so-called ApS. This type of company is characterized by the fact that you have to put up with 40,000 kroner in company capital.

Because your ApS puts in 40,000 kroner, this means that you do not have to pay personally if your company goes bankrupt.

partnership

A partnership is one of the other types of business that you can choose to create if you want to try your hand at starting your own. This type of business is advantageous if you have several people who would like to start a business together, but you do not have 40,000 as start-up capital.

Since you do not pay any company capital, this means that you have to pay personally if the company goes bankrupt. However, if your business grows, it is possible to convert it to ApS when you have the necessary funds.

Sole Proprietorship

If you want to start your own business, it can be obvious with a one-man business. Here, too, there is no requirement for start-up capital, in return you are personally liable with your private wealth.

A one-man business has some advantages over ApS. Among other things, no annual report must be submitted to the Danish Business Authority. Simply make sure you keep track of the company's revenue and expenses.

Companies

If you are going to start a limited company, you must invest a minimum of DKK 400,000 in company capital. However, the owners are not personally liable for the company's obligations.

As you can hear, many different conditions apply to the different types of business. Therefore, if you are going to start your own business, it is a good idea to find out which type of business is the best fit for the ideas you are going around with.