You don't need a company to start testing an idea. You need one when you sign your first customer contract, take investment, hire, or spend serious money. When that time comes, the type you choose matters.
The three main families
- 1Sole traderJust you, registered as a business. Cheap and simple, but you're personally liable for debts, and you can't split ownership with a co-founder.
- 2PartnershipTwo or more people running a business together. Often personally liable, and not designed for investors. Rarely the right choice for a startup.
- 3Limited companyA separate legal entity (LLC, Ltd, GmbH, d.o.o., SARL, BV, AB, AS...). Owners are liable only up to what they put in, ownership is split into shares, and new owners can join. This is the standard for co-founders.
What to consider
- Where are your customers, and where does the team live?
- Minimum share capital and setup costs.
- Corporate tax and how founders are taxed when they take money out.
- Do you plan to raise from investors? Some prefer specific structures (for example a Delaware C-Corp in the US).
- How easy is it to issue new shares and handle vesting?
- Ongoing costs: accountant, annual filings, audits.
Most co-founder teams that want investors choose the standard limited company in the country where the founders live. Moving or adding a holding company later is possible, so don't let this decision block you for months.
Start a company in your country
Each guide below covers company types, step-by-step registration with official links, costs, time, taxes and how to protect your name.