Understanding Business Structures: Sole Proprietorship to Corporations

Individual Business: A business type with physical personality, meaning it can be classified as a persona. This includes sole proprietorships or individual enterprises and civil societies.

Employer or Individual Companies: An individual who operates in their own name and company, through a commercial, industrial, or professional activity. To do this, you must be an adult and have full availability of your own goods.

Private Civil Society: Based on a contract where two or more persons agree to pool money or goods for industry, with the desire to share profits. These are formed by more than one person and are considered individual companies because they lack a distinct legal personality. There are no limits on capital, and the trade name can be any name chosen by the members.

Enterprise Society: A company with legal personality, meaning it has a distinct personality separate from its owners. All enterprise societies must be formalized in writing and registered with the Commercial Register.

Mercantile Society: Formed by several people who combine their equity funds for common trading. All mercantile societies must be formalized in writing and enrolled in the Registry. There are two types:

• Personalistic Society: Management is up to the members, making the personal aspect of each member more important than the capital.
• Capitalist Society: The contribution of capital is more important than the personal characteristics of the members.

Limited Liability Company (SL): A capitalist society suitable for partners who do not require a high amount of capital. General Characteristics: The number of partners can be one or more. Partner liability is limited to the capital contributed. Capital is divided into shares (minimum of €3005.06). These companies are taxed for corporation tax.

Company Bodies: The management of a company is the responsibility of a social body:

• General Meeting: The deliberative and decision-making body. Issues that can be addressed include the analysis of labor management and the adoption of annual accounts.
• Administrators: Company management can be handled by one person or a board of directors. Administrators do not need to be partners. To conduct annual accounts, they must follow corporation rules.

Public Limited Company (SA): A purely capitalist society where the conditions of the members have no personal reference. General Features: The number of members can be one or more. Partner liability is limited to the contributed capital. Capital is divided into equal parts called shares. The minimum share capital is €60,101.21. These companies are taxed for corporation tax.