If you are planning to start a new business on your own, you will probably want to consider whether or not you should set up a company.
Or maybe you have been running your business success as a sole trader, and now think it’s time to make it more formal by incorporating it as a registered business. To know more about Setting up a company you can check out this source: Business in Switzerland — your guideline for starting own business in Switzerland.
There are many advantages to setting up a company, the most important of which is that a company in law is a separate entity from the company owners. What this means is that any legal action that is taken against the company does not impact on the company owners as individuals.
To demonstrate the importance of this, let’s use an example. A sole trader who specializes in building and selling custom cars issued because one of the cars he sold has crashed, and accident investigators have determined that the cause of the crash was faulty construction.
The same individual could have set up a company and carried on exactly the same business. In this scenario, the business is deemed to be the builder and seller of the car.
Operating as a registered company also brings an added level of prestige. When potential customers are looking for a particular product or service, they will tend to believe that a registered company is more credible than a sole trader.