When setting up a business, choosing the right business structure is one of the first and most crucial decisions entrepreneurs have to make. Two common options often considered are the partnership and the Foundation Administration Office (STAK). But how do you choose between these two? Let's delve deeper into the characteristics, benefits, and considerations of both structures.

Partnership

A partnership is a collaboration between two or more individuals with the aim of jointly operating a business. Here are some characteristics and benefits of a partnership:

• Flexibility: A partnership offers flexibility in managing business activities and distributing profits and losses among partners.
• Joint liability: In a partnership, all partners are personally liable for the debts and obligations of the business. This can be an advantage for small businesses seeking simple liability structures.
• Direct involvement: All partners are directly involved in decision-making and daily management of the business, which can lead to strong collaboration and synergy.

STAK: Protection and Structure

A Foundation Administration Office (STAK) is a legal entity that holds the share certificates of a company on behalf of the owners of those certificates. Some characteristics and benefits of a STAK are:

• Protection against hostile takeovers: A STAK can provide effective protection against hostile takeovers by centrally managing shares and voting rights, thereby retaining control over the company.
• Succession planning: For businesses looking for structured succession planning, a STAK can be a valuable tool to ensure continuity of the company in leadership changes.
• Tax efficiency: Depending on the specific situation and jurisdiction, a STAK can offer tax benefits such as tax savings or a more efficient tax structure.

Making the Right Choice

Choosing between a partnership and a STAK depends on various factors, including the specific objectives of the business, the desired level of involvement and liability of partners, and the need for protection against external influences. It is important to carefully evaluate these considerations before making a final decision.

Conclusion

When making these important decisions, Share Council is ready to guide and advise you. Our specialized experts can help you understand the characteristics and benefits of both a partnership and a STAK, and support you in choosing the right structure for your business. Contact us today for a personal consultation and let us help you create a solid foundation for your business success.