Sep 22 2009, 02:58 PM
QUOTE(Lawyer1 @ Sep 22 2009, 12:59 PM)
3) If you just move funds to and from company account to personal account, as you need, without accountability tracking, it's bad for company books, and shows lack of financial management at the company level.
It does not matter to me if my company books are bad, after all, it's a sole proprietorship, and I am not accountable to any external auditor. Neither do I have any partner, shareholder or independant director. I do not intend to turn it into a PLC, so I do not need to build a resume of good corporate governance. So long as I select my clients carefully and do not get into any bad dealings, my assets will not be jeopardised.
I have another theory here : building a Sdn Bhd or Pte Ltd is a lot of hassles, and the costs and expenses incurred are truly not necessary if we have the proper tactics and plans in-place. The purpose of a business is to make money with the minimum risk and hassles - so if these 2 objectives can be achieved, why not just set-up a sole proprietorship ?
....let me know if you needed my advice too,.....
3) Once business size become bigger, it is always advisable to be Sdn. Bhd. to limit your liabilities, that's why we often see sole proprietorship in small scale, once become bigger, all turn to be sdn bhd. But I have no knowledge whether lawyer firm can be register as sdn bhd or not to run.It does not matter to me if my company books are bad, after all, it's a sole proprietorship, and I am not accountable to any external auditor. Neither do I have any partner, shareholder or independant director. I do not intend to turn it into a PLC, so I do not need to build a resume of good corporate governance. So long as I select my clients carefully and do not get into any bad dealings, my assets will not be jeopardised.
I have another theory here : building a Sdn Bhd or Pte Ltd is a lot of hassles, and the costs and expenses incurred are truly not necessary if we have the proper tactics and plans in-place. The purpose of a business is to make money with the minimum risk and hassles - so if these 2 objectives can be achieved, why not just set-up a sole proprietorship ?
....let me know if you needed my advice too,.....
Sole-proprietorship is cheaper and easier, but it is treated as personal wealth, while for Sdn. Bhd. company and individual asset is separated out.
Because when business become bigger sometimes, not everything can be totally controlled, nor you can have every insight of the deal done one by one. So to limit the potential liabilities like your company made mistake and need to pay compensation, at least it will only affect the company, not your personal asset.
Joking aside,
Your advice do cost or not?
Every appoitment with lawyer and advice from lawyer is counted per hour basic.
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