What is the organizational form suitable for college students to start their own businesses? With the increasing pressure in the modern workplace, the requirements for the professional quality of workplace workers are constantly improving. For this phenomenon and trend, people in the workplace need to constantly improve themselves to cope with various problems in their future work. Many students choose to start a business as soon as they graduate. What are the organizational forms suitable for college students to start their own businesses?
What is the enterprise organization form suitable for college students to start their own businesses? 1 (1) limited liability company.
A limited liability company is an organizational form in which shareholders are liable to the company to the extent of their subscribed capital contribution. All natural persons, legal persons and other organizations that are not prohibited by laws and regulations from doing business or running enterprises can apply for a limited liability company.
(2) A sole proprietorship enterprise
A sole proprietorship enterprise refers to a legally established business entity in China, which is invested by a natural person and its property belongs to the investor, and the investor assumes unlimited liability for the debts of the enterprise with his personal property. China citizens who are not prohibited from doing business or running enterprises by laws and regulations can apply for sole proprietorship enterprises.
(3) Partnership enterprises
Partnership refers to the general partnership and limited partnership established in China by natural persons, legal persons and other organizations according to law. A general partnership consists of general partners, who are jointly and severally liable for the debts of the partnership. Limited partnership consists of general partner and limited partner. The general partner shall be jointly and severally liable for the debts of the partnership, and the limited partner shall be liable for the debts of the partnership to the extent of the capital contribution subscribed.
All natural persons, legal persons and other organizations that are not prohibited by laws and regulations from doing business or running enterprises may set up partnership enterprises. Among them, wholly state-owned companies, state-owned enterprises, listed companies, public welfare institutions and social organizations may not become general partners.
(4) Individual industrial and commercial households
Citizens with operational ability refer to individual industrial and commercial households registered in the administrative department for industry and commerce in accordance with the Regulations on Individual Industrial and Commercial Households. Individual industrial and commercial households can operate independently or at home. The means of production of individual industrial and commercial households are owned by individuals or families, with individual or family labor as the main form and operating income dominated by individuals or families. Because individual industrial and commercial households bear unlimited liability for debts, individual industrial and commercial households do not have legal personality. If individual industrial and commercial households apply to be transformed into enterprise organizations and meet the statutory requirements, the registration authority and relevant administrative organs shall provide convenience for them.
(5) Farmers' professional cooperatives
On the basis of contracted management of rural households, producers and operators of similar agricultural products or providers and users of similar agricultural production and operation services are voluntary joint and democratically managed mutual economic organizations.
What is the enterprise organization form suitable for college students to start their own businesses? The choice of enterprise organization form is not only related to the amount of tax paid by entrepreneurs, but also related to the enterprise registration process, personal responsibility and financing behavior of entrepreneurs.
The most common forms of enterprise organization include sole proprietorship, partnership, limited shares and limited S shares. Recently, two new types of enterprises have been added: limited liability system (LLC) and limited liability partnership system (LLP). Since different tax rules are applicable to different organizational forms, entrepreneurs must hope to make the wisest choice and choose the most suitable organizational form.
If the entrepreneur chooses "sole proprietorship enterprise" as the initial organizational form of the enterprise, but later decides to transform it into a partnership enterprise, then the entrepreneur can reorganize the enterprise into a partnership enterprise or other forms. In the case of enterprise reorganization, the entrepreneur must notify the IRS and the tax authorities of the state where the entrepreneur is located.
partnership
If a start-up enterprise is owned and operated by many people, entrepreneurs may wish to take partnership as the organizational form of the enterprise. Partnerships include two types: general partnerships and limited partnerships. In a general partnership, the partners are responsible for the operation and management of the company and bear the debts and other obligations of the enterprise.
A limited partnership includes both general partners and limited partners. The general partner is the owner and operator of Cye enterprise and undertakes the responsibility of partnership enterprise, while the limited partner only plays the role of investor; Limited partners have no control over the company and do not need to bear the same responsibilities as general partners.
Limited partnership is not the best choice to form a new company unless the entrepreneurs expect that the investors of the company are mostly passive investors, because this partnership structure needs to report a large number of documents and the management is extremely complicated. If two or more partners of an entrepreneur want to actively participate in the operation of the enterprise, then the general partner system will be more suitable.
One of the advantages of the partnership system lies in the tax treatment enjoyed by this structure. Partnership enterprises do not have to pay income tax, but "transfer" profits or losses to partners. When paying taxes, the partnership enterprise shall submit a tax return (form 1065) to the IRS to declare its income and losses. In addition, each partner must declare his share of income and loss on Schedule K-1065.
If entrepreneurs adopt the general partnership system as the organizational form of enterprises, they should mainly consider personal responsibility. Like the sole proprietor, the general partner bears the responsibilities and debts of the partnership. Each general partner can make loans on behalf of the partnership or make mandatory decisions that affect all partners (if the partnership agreement allows). Please remember that the construction cost of a partnership is much higher than that of a sole proprietorship, because the registration of a partnership requires more legal and accounting procedures.
sole proprietorship
The simplest form of enterprise organization is a sole proprietorship, and usually only one person owns and operates the enterprise. If entrepreneurs want to be in charge of business operations alone, try this form.
The attraction of a wholly-owned enterprise lies in the tax burden, because the expenses and business income of the enterprise are included in the entrepreneur's personal income tax, that is, the form 1040. The company's profits and losses are listed in Schedule C and reported to the tax authorities together with the 1040 table. The "profit amount" listed in the schedule is transferred to the individual tax return. Another advantage is that the losses suffered by the company can offset the income earned by entrepreneurs through other channels.
As a sole proprietor, entrepreneurs must report the SE plan and form 1040 at the same time. The purpose of se plan is that entrepreneurs can calculate unpaid self-employment tax. In addition to paying the self-employment tax every year, the entrepreneur must also pay the estimated tax, provided that the entrepreneur predicts that after deducting the withholding tax and tax credit, the federal tax owed this year is at least $65,438 +0,000, and the withholding tax is lower than the smaller of the following two: (65,438+0) 90% of the tax paid in the current annual tax return, or (2) paid in the previous year.
The federal government allows entrepreneurs to pay four equal estimated taxes on 1 month 15, April 15, June 15 and September 15 every year. Different from other organizational forms, a wholly-owned enterprise only needs to pay business tax once. Another advantage of this structure is that entrepreneurs have complete control over the enterprise-all decisions are made by entrepreneurs.
However, this structure also has some disadvantages to consider. Choosing sole proprietorship means that the entrepreneur personally bears the company's liabilities. Therefore, this will bring risks to entrepreneurs' assets, which can be confiscated to pay off the company's debts or pay off the legal claims against entrepreneurs.
The financing of sole proprietorship enterprises is also very difficult. Banks and other financing channels are reluctant to provide corporate loans to wholly-owned enterprises. In most cases, entrepreneurs will have to rely on their own funds, such as savings, real estate or family loans.
What is the enterprise organization form suitable for college students to start their own businesses? 3 1. Entrepreneurial spirit of "holding high and fighting high"
This kind of entrepreneurship is often aimed at the big market, with its own technical advantages or scale effect, strong team and unique competitive advantage, and also needs the support of capital and multiple rounds of financing. Once successful, it can become a leading company in a field, play an important role in the industry and become a large company with standardized governance.
To achieve this goal, the requirements for founders and entrepreneurial teams are very high. They are not only ahead in positioning and mode, but also able to make products or services ahead of their competitors. They also have strong financing ability and maintain their dominant position with the help of capital.
In most countries, the proportion of companies that can successfully go public is less than one thousandth of the total number of companies founded in the same period. This shows the difficulty of this kind of entrepreneurship.
However, difficulty does not mean impossibility. Nearly 10 of the entrepreneurial enterprises funded by Shanghai University Students' Science and Technology Entrepreneurship Foundation have been listed on the New Third Board, including Titan Technology, Lingxin Vision, Re-enjoyment Optics, Greenness Information and Re-exhibition Intelligence.
There are also unicorn companies that have reached hundreds of millions or billions of yuan in financing, such as "Hungry" and "Love Recycling". The financing amount is tens of millions. In sub-sectors such as artificial intelligence, environmental protection, materials and chemical industry, there are not a few companies with annual sales exceeding 10 million. They are all successful examples of this kind of entrepreneurship.
Which entrepreneurs can choose this model?
Zhang Wenbiao, the founder of Chen Tong Environmental Protection, once said that it is far from enough for an entrepreneurial leader to have ten roles, and even a top one is needed. Ocean, the founder of dry cleaners, said that entrepreneurship is an extreme sport, which requires very high people, and its vision, judgment and physical strength are far beyond the average person.
In short, be very good. Whether you are suitable or not depends on whether you can pass two levels: one is the team level and the other is the capital level. Can your charm and strength impress people like you or even better than you to start a business with you and form a stable and effective team? Can your initial ideas and plans impress countless investors who look at the project, gain their recognition, and pay for the support of funds and resources?
These two levels are only tickets for people, and it is much harder to succeed in starting a business than to form a team and obtain financing. 90% of the companies that got the A-round financing failed to get the B-round financing, that is, the entrepreneurial effect could not be recognized by the market or investors.
Entrepreneurship of "holding high and fighting high" is often at the forefront and on the main track of entrepreneurship concerned by the whole society. Entrepreneurs struggle day and night to integrate capital, marketing, R&D, production and other resources in the most efficient way, so as to be in an advantage in the competition, survive and get the next round of financing.
2. "Small but beautiful" entrepreneurship
Such companies can have a certain amount of start-up capital first. The founder will not pursue large-scale financing, and his own positioning is relatively grounded, which is easy to generate cash flow and thus survive. For example, providing services for enterprises or undertaking various outsourcing services.
Ordinary investors will not invest in this small-scale service-oriented company, because this business model does not have strong reproducibility and explosiveness.
Entrepreneurs can start such entrepreneurial projects with their own skills or contacts, and many of them struggle with partners, take orders together and develop themselves. Most small and medium-sized start-ups fall into this category.
Many of them are oriented to the business model of To B (enterprise-oriented) or aimed at individual customers in a specific region or field.
This small and medium-sized enterprise is a new force in every country's economy, which creates most employment opportunities and provides various services for enterprises and individuals.
Founders in their own fields, intensive cultivation, can also get better material returns and a sense of accomplishment.
Of course, it is not impossible for roadside small restaurants to grow into restaurant chains. Examples of McDonald's and Starbucks will also appear in China. But this possibility is very low, depending on the ability of the entrepreneurial team. Ambition and opportunity.
The "20 17 China University Students' Entrepreneurship Report" released by China Renmin University shows that the entrepreneurial intention of China university students continues to rise. Nearly 90% of them have considered starting a business, and 26% have strong or strong entrepreneurial intentions. College students' entrepreneurial activities are mainly concentrated in the fields of "consumer e-commerce" and "catering and accommodation". The motivation of starting a business is "pursuing a free working lifestyle".
Choosing a "small but beautiful" entrepreneurial way is one of the best ways for college entrepreneurs to realize their entrepreneurial ideals.
3. "Super Personal" Entrepreneurship
This kind of entrepreneur has an outstanding professional skill that ordinary people don't have. For example, I am a writer, an artist, a star lecturer or an independent designer.
This is an entrepreneur in a broad sense, and can also be said to be a freelancer.
Although small, the most important thing is to have your own independent final decision-making power.
Although it is a small junk, it can sail freely in the sea. They need to choose their own positioning, thinking mode, marketing, establish advantages and provide distinctive products and services. These are all things that companies should do when starting a business. This kind of individual entrepreneurship constitutes the ecosystem of modern service and entrepreneurship in the whole society.
We visited the enterprises funded by venture capital funds, mainly the first two categories. Many entrepreneurs start their businesses from their own specialties and expertise, and they also think so:
Lei Yong, an entrepreneur funded by Tongji Branch, said that if you love a certain major, you can choose two paths: one is to take the technical route and become an expert master; One is to take the entrepreneurial route and become an entrepreneur in this field. This needs to be carefully selected according to its own conditions and environment.
Zhang Yuting, an entrepreneur who is also Tongji, studied the comparison of the ability models of designers and entrepreneurs, and suggested that designers choose their own career development path according to their own ability characteristics, become independent designers and realize personal entrepreneurship; Or take the road of company entrepreneurship and do business management.
In addition to the above three modes, there are other types of entrepreneurial ways. For example, in-company entrepreneurship, such as the Shanghai Micro-spectrum Chemical Company we visited, has this entrepreneurial model: the company provides platforms and resources, and individuals form teams to develop their business independently.
For the entrepreneurial team, it is not only a real venture, but also a rich return once it is successful, relying on the resources and platforms of existing companies to reduce the risk of starting a business. For the company, it is a win-win model, which can not only give full play to the maximum value of talents, but also expand its own business ecological chain and enjoy the fruits of entrepreneurship.
To sum up, the key to choosing the type of entrepreneurship is to proceed from its own conditions and resources. People with superior ability, complete resources and unique opportunities can choose the first type of entrepreneurship. If you don't have the conditions temporarily, you can start from the second one. However, the self-conscious management ability is slightly weak, and the interest is more in their own professional skills. You can choose the third way to start a business and realize your entrepreneurial dream.