Company structures, liability, entrepreneurship, business law, corporate tax, income tax, personal assets protection, business financing
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Abstract
Overview of different company structures, their characteristics, and liability implications for entrepreneurs and businesses.
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[...] a causal link between the generating fact and the damage FORMS OF LIABILITY : Responsibility of personal act (Art. 1240) - each one is responsible for his own fault Responsibility of the act of another (Art. 1242) - parents ? minor children - employer ? [...]
[...] The financing of the company's activity This sequence studies how companies finance their activities through two main cycles: the investment cycle and the exploitation cycle. 1. FINANCING NEEDS INVESTMENT-RELATED NEEDS Types of investments - Equipment : lands, premises, equipment - of creation, productivity, modernization, capacity, replacement - incorporels : research, training, software, marketing - financiers : shareholding, acquisitions Financing required : stable resources (permanent capital) THE NEEDS RELATED TO OPERATION The Need in Working Capital (NWC) BFR = (stocks + client receivables) - (suppliers' debts + tax and social debts) Origin of BFR - lag between purchases and sales - storage of raw materials and finished products - credits granted to clients - credits obtained from suppliers Particularities : - the BFR varies by sector of activity - may be seasonal (example: parasols, toys) - requires permanent financing - credits obtained from suppliers THE ROLLING FUND calculation formula : FR = Permanent capital - Fixed assets rule of financial equilibrium : - FR must be positive - investments must be financed by sustainable resources fundamental relation : FR = BFR + cash interpretation : - FR negative = significant financial risk - FR positive = ability to finance the BFR and cash 2. [...]
[...] THE RESOURCES AND COMPETENCIES OF THE ENTERPRISE RESOURCES Tangible (corporeal) resources : - material : machines, factories, vehicles - financial : capital, loans, reserves - human quantitative : personnel Tangible (intangible) resources : - human quantitative : profiles, training, seniority - organisational : processes, flexibility - technological : patents, trade secrets - market-related : reputation, brand portfolio Strategic Resources : valuable, rare, inimitable, non-substitutable and non-transferable THE COMPETENCIES Individual Competencies : - know-how (knowledge) - know-how (techniques) - know - be (attitudes) Collective Skills : issues of organizational learning effects of experience : virtuous circle generated by repetition ? increase in activity ? [...]
[...] The choice of legal structure for the company 1. CRITERIA FOR CHOOSING A LEGAL STRUCTURE Before creating a company, the entrepreneur must consider several criteria : - motivations patrimonial : protection of personal assets - social protection : applicable regime (independent or salaried) - motivations for marriage : impact of the marital regime - tax motivations : income tax or corporate tax - financial motivations : investment and financing capacity - entrepreneurial willingness : alone or in groups 2. The Individual Enterprise MAIN CHARACTERISTICS : - the simplest and least expensive form - a single person (entrepreneur = enterprise) - Independent Plans (2022) : automatic separation between professional and personal assets - limited liability to professional assets THE MICRO-ENTERPRISE : - simplified regime of the EI - turnover ceilings to be respected - VAT franchise, simplified accounting 3. [...]
[...] SOCIAL AND SOLIDARITY ECONOMY (SSE) FOUNDING PRINCIPLES : - freedom of membership - non-profitability (no dividends) - democratic management: 'one person = one voice' - collective or social utility - priority to human over profit LEGAL FORMS The SCOP (Cooperative and Participative Societies) : - enterprises directed by employees - employees hold a minimum of 55% of the capital - fair distribution of profits The SCIC (Sociétés Coopératives d'Intérêt Collectif) : - production of collective interest goods / services - associated individuals of diverse natures (employees, clients, public bodies . ) The mutuals : - but non-profit, healthcare and insurance sector - mutualization of risks, no discrimination of members KEY POINTS TO REMEMBER : - no ideal structure : the choice depends on the project and the entrepreneur's objectives - patrimonial protection : since 2022, all individual entrepreneurs benefit from the separation of assets - possible evolution : a structure can evolve (e.g. [...]
