Ann wants to create a business in which she’s going to sell custom shirts. She is deciding what legal form to choose: an “empresa individual” or a “sociedad”.
At the beginning I think I won't generate much money...
I don't have many resources.
It will be difficult to have important debts.
Have you got a high capital?
Do you think you will be at risk of getting into debt?
How much do you think you're going to earn?
Then, I recommend you to choose an “empresa individual” because you are the only entrepreneur of your business, you don’t have a minimum capital nor transmission of ownership, and you have to pay the IRPF, which grows fairly the more income you have.
I don’t have enough money to pay for a t-shirt printing machine, so I have decided to finance in a long-term period, borrowed found and external source type of financing: Leasing.
Ann decides to follow her friend's advice and she opens a microenterprise in her city.
The leasing enterprise will buy the machine and rent it to me.
The only inconvenience is that, finally, I will be paying a higher amount of money for the machine.
The advantages are that I don't have to find a large cash to purchase it to start with, and the leasing company will care and maintain the machine.
In the end, Ann financed in leasing. The supplier of Ann’s business came today…
I will pay now then. Thank you.
Can I get a trade credit?
Sure! You can pay next month. However, if you pay today, you are going to have a discount of the 5% of the total price.
You have ordered 1.000 basic t-shirts. It’s 3.000$ in total.
Ann wants to know the profits that her firm has earned last month.
I've sold 1.000 t-shirts, each one for 10$. I bought them for 3.000$ in total and I spent 500$ of rent and other fixed costs. The revenue would be 10.000$ and the total costs would be 3.500$. If I’m not wrong... I’ve earned 6.500$!