Going into business with a friend: Choose DA
Chances are you may have heard horror stories about friends going into business together and ruining their relationship. Yet, starting a business with a friend can be advantageous. Benefits include reduced costs and duties. To make things easier, start the business as a partnership. Business partnerships are made in such a way to include individual responsibilities and roles. While a partnership is not the typical way for an entrepreneur to choose to organize a business, two heads are always better than one. You’ll be sharing profits, liabilities, and, most importantly, the making choices. Setting up a partnership is a good decision.
Deciding which company form to choose is the most important part. The common choice when it comes to opprette aksjeselskap is the partnership with shared liability (DA). This type of partnership allows you and your friend to share the risks associated with running a business and protects you in case something happens. Simply put, participants collect an unlimited personal liability for all the company’s debts. In turn, each participant is responsible for his/her stake. For instance, if you own 50 percent of the company, you are required to cover 50 percent of the debt. A partnership with shared liability is a great choice when starting a business. A DA is a simple form of business organization, but it generally pays off. Don’t opprette firma though with someone you can’t completely rely on or trust. The business should not depend only on you. There’s a reason why a partnership involves two persons. In time of need, you need to know that you can rely on someone. The best thing to do is do a risk assessment.
If you’re genuinely interested in starte DA, you should know there are laws and regulations you have to adhere to. The participants are required to write a partnership agreement and of course sign it. Owners are not required to provide their email address or disclose their phone number. What you have to do though is register the company with the Norwegian Register. Don’t be concerned with the registration fee, but with the business name. Check what company names are out there. Equally important is to register the corporation for VAT number. Even the tiniest mistake can cost you, so you should get help when starting your DA. To spare yourself the trouble, order your partnership today from Oppstart.no. You just select the package and the documentation and registration will be taken care of for you. This is a great way to get your company without putting yourself through the Companies Act.
The bottom line is that if you’re going to start a business with a friend, choose a partnership with shared liability. A DA offers the same advantages as a sole proprietorship. This means that there’s little paperwork and bureaucracy and paperwork involved. It must be stated again. Don’t go into business with someone you can’t depend on for support. Even though you’re friends, things won’t be easy. As the company grows, you’ll have more and more things to do.