Questions about establishing a startup corporation.
I am planning to start a startup.
Currently, three people are planning to co-found the company,
one person provides funding and attracts investment, and two people are developers and practitioners with practical skills, and they are in charge of the actual ideas, development, and operation.
At this time, considering attracting funds or loans for the company's future growth, I heard that it is better to start as a corporate entity rather than a sole proprietor. In fact, if you start with a small amount of capital, you only have to pay about 400,000-500,000 won in legal fees.
Here are my questions.
1. If one of the founders providing funds + one of the two practitioners takes on the role of co-representative, and one practitioner becomes a registered director,
can the equity distribution ratio be equally distributed at 1/3 among the three people, and can the power over management rights be divided by 1/3 each? (I heard that one of the practitioners is paying off debt adjustments and has almost paid it off, so there is not much remaining debt, but it can be a disadvantage in terms of creditworthiness when attracting funds such as corporate loans when listed as a co-representative.)
2. Does the creditworthiness issue of the aforementioned one founder greatly affect corporate loans or attracting funds in the future?
3. If it does not work well, would there be any major disadvantages to proceeding as a sole proprietor first and converting to a corporation when the debt is fully paid off and the company has grown?
4. Currently, I plan to start with the food service industry and grow it into a design studio, food material distribution, and MD business. I wonder if I should also determine the type of business as a corporate entity like a sole proprietor, and can I get advice on what is advantageous? I am thinking of using app development and website for the business.
5. Currently, I have not established a corporate entity (sole proprietor)
I have started with a restaurant as a first step.
If you want to establish a corporation, you need capital, can the capital invested in the restaurant be included as capital when establishing the corporation, and can the equity be divided equally among the three?
This is my first business, and I have many difficulties. I would appreciate your valuable advice.
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