“I want to start a business, but I don’t know what to start with” “How much do I need to start a business?”
There are various worries about independence and entrepreneurship, but I think the first one is the worries about “money.”
“Money and entrepreneurship taught by tax accountants” series starting from this time. In this series, Mr. Yuji Saito, a tax accountant who appeared in “Entre STYLE MAGAZINE” last time, will explain the knowledge necessary for starting a business from the aspect of money.
For the first time, he explained what entrepreneurship is, how much it takes to start a business, and the knowledge of money needed to start a business.
This is a must-see for anyone who thinks; “I can’t start a business because I don’t have the money.
Entrepreneurship is not just about “creating a company
What is “entrepreneurship” in the first place?
Entrepreneurship is written as “starting a business”, but there are two main ways to start a business.
- Establish a corporation (such as a joint-stock company)
- Act as a sole proprietor
The first thing that comes to mind when you think of starting a business is to establish a corporation (≒ Corporation, etc.).
For example, the establishment of a joint-stock company requires an initial investment of about 300,000 yen regardless of the type of business. In addition, it takes some time and effort to prepare complicated documents for establishment.
Since it takes money and effort, there is a big merit in establishing a joint-stock company.
One of them is to be able to make all kinds of contracts as a company.
For example, you will be able to rent real estate or sign a contract to borrow money from a bank. This is a big advantage. Let’s think about what is different with the feelings of the lender.
Even if you want to run a business, lending a large office or a large amount of money to an individual involves a considerable risk. Of course, the examination will be strict, and the lender is somewhat uneasy.
But what if you lend it to a company?
When you hear that you “lend a company” an office or a large amount of money to run a business, you feel a sense of security.
This sense of security comes from the fact that you have the money and the ability to spend time setting up a corporation = worthy of credit.
What if you work as a sole proprietor?
A sole proprietor can start by simply submitting a business start notification to the tax office. Although it depends on the type of business, there is basically no need for a start-up fund such as “300,000 yen” for establishing a joint-stock company. (However, the cost of capital investment when opening a restaurant is not included).
However, as I explained earlier, the social credibility tends to be inferior to that of a joint-stock company because it can be easily opened as an “individual”.
When starting a business, there are advantages and disadvantages when working as a sole proprietor and when starting a corporation (such as a joint-stock company).
By the way, when I first started my business, I started as a sole proprietor. When I submitted the business start notification to the tax office, I was happy to think that I was a sole proprietor, so I took a picture in front of the tax office (laughs). I remember posting the photo on SNS and expressing my determination to start a business.
The reason why I started a business as a sole proprietor is that I had no plans to hire employees at first, and I thought that establishing a joint-stock company was a very high hurdle.
In addition, many tax accountants start as sole proprietors because they have a certain degree of social credibility depending on their qualifications. I was thinking of incorporating it when the business expanded beyond a certain scale.
Currently, we have established a limited liability company with a joint-stock company and are trying to spun off depending on the business content. Eventually, I would like to establish Holdings Co., Ltd., which is a one-stop solution for problems related to money. Dreams are endless.
It’s important to research and choose the entrepreneurial method that suits you!