The benefits of choosing a limited liability company (ApS) when starting your own business are numerous. First and foremost, a key advantage is limited liability, which provides security for the owner. This means that in the event of financial problems or company liabilities, the owner’s personal assets are not at risk of loss and the liability is limited to the amount invested as share capital, which in the case of an ApS is usually no more than DKK 40,000. This provides the entrepreneur with peace of mind and financial security.
Furthermore, the ApS structure allows flexible management of co-owners and shareholders. If necessary, new partners can be easily engaged or shares can be sold, allowing the company to grow dynamically and adapt to changing market conditions.
By creating an ApS, the company also becomes an independent legal entity, which can bring tax advantages and also facilitate settlements with authorities or financial institutions. In addition, the flexible structure enables the creation of different business models, such as a holding company with an equity entity, which increases management efficiency and growth strategy.
The popularity of limited liability companies also makes them well known among business partners, which builds trust and facilitates business relationships. Finally, owning an ApS can make it easier to raise capital to grow a business, as investors and financial institutions often prefer this legal form due to its stability and transparency. Thus, choosing an ApS as a legal structure can bring many benefits to an entrepreneur and facilitate the development of their business.
