Imagine a life that you can shape according to your own ideas. With the opportunity to use your free time, your ideas and your way of life as you have always wished. Not only you dream of such a life. Many others also do this and therefore strive for them independence at.
It has never been so easy to start up!
For many startups, the goal is a successful exit in the form of a sale or even going public. However, some companies fail beforehand, and the exit then means the end of the business. The Institute for SME Research (IfM) also shows a number of 354,000 bankruptcies in return for 338,000 business start-ups. The institute also has almost 580,000 companies looking for successors. The main problems are the failure to find a suitable company or financing difficulties. Also, the commission of a professional broker is often too high an investment in return for the proceeds from the sale of small businesses and projects.
Projektify offers a platform which, on the one hand, enables the free purchase and sale of web projects and startups via a marketplace. This is supported by tool-based solutions for, among other things, pricing, the creation of advertisements and the purchase process, which support the user in the sales process.
In addition to numerous others, we mainly had to find an answer to the following question: “Which legal form is the right one for our idea?” In answering this question, we wanted to assess all the possibilities and ways!
Best form of company for start-ups
Most founding teams often decide to join forces like that GbR (Society under civil law). The long runner is still the UG – certainly mainly due to the high reputation due to the quite high capital contribution and the limited liability of the shareholders.
A non-profit association has numerous advantages over other legal forms. This includes not only tax advantages, but also the fact that both the board and the members are protected from the risks of contractual liability. In contrast to the GmbH, however, the establishment costs of an association are much lower. Equity is also not necessary for the foundation. In addition, the association can appear closed to the outside world as a legal entity, sue in its own name and relatively easily settle investments by third parties as donations.
Best corporate form for start-ups – double structure of association and GbR or GmbH?
The restriction, however, is that these profits must be promptly reinvested in the charitable purpose of the association. Especially in the growth phase of a startup, the form of an association makes perfect sense, as profits are largely reinvested and if only a manageable salary is paid for the management. So if you want to get big on the coal, you can’t avoid founding a classic company in the long term. However, this does not make the association that was founded at the beginning obsolete. But on the contrary!
Best corporate form for start-ups – potential of a double structure
Because an association is non-profit, but for some projects like ours, non-profit status and large numbers of members are desired, double structures often arise. In addition to the association, there is then an economic organization (e.g. GbR or GmbH) that serves to earn income. The association ensures publicity, large numbers of members and cares for a good cause. An example of this is a cultural institution whose gastronomy is privately managed.
Examples of more successful double structures
With over 284,000 members (as of the end of 2016), FC Bayern is the football club in the world with the largest number of members. And yet, FC Bayern is also a business that is doing more than well. The latter is, to be more precise, FC Bayern AG, which generates any non-profit income – and not too little. But without the non-profit association, there would also be no stock corporation, whose business concept is based on the activities of the association. It is no different with other football clubs.
Conclusion: Success factor combination model
We at Projektify are satisfied with our decision and are pleased that we can involve all freelancers and users directly on the platform. Especially in high-growth projects such as Projektify, the association ensures high membership numbers and thus a strong public image – things that are essential for long-term success.
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