I have a question about establishing a startup corporation.
I am planning to start a startup.
Currently, three people are planning to co-found the company,
one providing funds and attracting investment, and two are developers and practitioners with practical skills, and they are responsible for ideas, development, and operation.
At this time, considering future fundraising or loans for company growth, I heard that it is better to start as a corporate entity than as a sole proprietorship. In fact, if you start with a small amount of capital, you only have to bear about 400,000 to 500,000 won for legal fees.
Here are my questions.
1. If one founder providing funds + one of the two practitioners serves as a co-representative, and one of the practitioners is registered as a director,
can the equity distribution ratio among the three be equally 1/3, and does the management control power then shift by 1/3 each? (I heard that the credit rating of one of the practitioners is a disadvantage in attracting funds such as corporate loans because they are repaying debt adjustments and have almost paid off the remaining debt, although the remaining debt is not large, but the remaining debt is not large.)
2. Does the credit issue of the one founder mentioned above significantly affect corporate loans or fundraising?
3. If it has a negative effect, would there be no major disadvantage if you proceed as a sole proprietorship first and then convert to a corporation when the company grows after all debts are paid off?
4. I plan to start with the food service industry and grow into a design studio, food material distribution, and MD, but I think I have to choose a business type for the corporate entity like a sole proprietorship, so can I get some advice on which one is advantageous? I am thinking of using app development and websites as a business.
5. Currently, I have not established a corporate entity (sole proprietorship)
and I've started with a restaurant.
To establish a corporation, capital is required, and can the capital invested when starting the restaurant be included as capital when establishing the corporation, and can the equity be divided equally among the three?
It's my first business, and there are many difficulties. I would appreciate your valuable advice.
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