If you don't start a company, no matter how big your business is, you have to bear the liability for compensation with all your property, which is too risky and is not conducive to promoting investment.
1. Being a legal business entity is also the mainstream of China's economic form and enjoys more extensive protection from national policies. After the establishment of the company, it can cope with government inspections in its daily business activities, so that it can devote more attention to its customers instead of being afraid of inspections and hiding from Tibet.
2, the need to cooperate with customers, licensed to operate. Starting a company is undoubtedly the first step in the normalization and legalization of operation. Imagine, at the same price and under the same conditions, do you usually choose a company with complete qualifications as a partner or an individual with nothing? Then we can understand that the establishment of the company has a considerable promotion effect on the credibility of enterprises and the integrity of entrepreneurs to a certain extent.
3. It is convenient to establish the company's brand. The registered company not only has the qualification to apply for domestic trademarks, but also the brand building of the company is mutual. The company is the solid subject of the brand, and a company with good reputation and strong strength can often build an excellent brand, which is what every enterprise likes and is also the guarantee of every customer's confidence in brand cognition.
4. It is convenient for financing and credit. Personal financing and bank loans are more difficult. With a company, it is different. You can apply for credit loans from banks and raise funds by means of corporate mortgage loans, which can be a good supplement to the fund. Good business projects can even attract venture capital, large enterprises to buy, so as to make the cause develop faster.
5. The need for invoicing. In business dealings, invoicing is an inevitable part. In the past, you probably didn't need invoices or invoices for customers because you were doing a small business, so you could only move around in this limited circle, which obviously didn't meet your development needs. Large companies and enterprises all need invoices, which is the direction that a formal enterprise should go. A company can apply for and issue its own invoices, and if it meets certain conditions, it can also deduct taxes.
6. Buy social security. For some entrepreneurs with foreign registered permanent residence, you don't want to stay in the bustling city where you started your business and take away the desolation. You may want to leave leaves and take root here and create a blueprint for development here. According to the current policy, many places are in other places, and individuals cannot buy social security, let alone enjoy social security benefits here. In this specific legal environment, starting a company can solve this problem. As an employer, you can buy it, and so can your employees. Management is time-consuming, and enterprises have to buy social security to retain people. This is timely in combination with the situation.