Types of legal entities in Russia
There are different types of legal entities in Russia, which are like groups of people that work together to do business.
The first type is called a sole proprietorship, which is like having only one person in charge of the business. This person is responsible for all the good things and bad things that happen in the business, and they may have to pay for any problems that come up.
The second type of legal entity is called a partnership, which is when two or more people work together to run a business. Each person has their own responsibilities, and they usually split the profits and losses equally.
The third type is a limited liability company or LLC, which is a group of people who share ownership and responsibilities for the business. They can hire employees, borrow money, and pay taxes like their own separate person, but they are not personally responsible for any debt or financial problems that the company might have.
Lastly, there is a joint-stock company, which is like a big group of people who own parts of the company by buying and selling shares. They can also elect a board of directors to make decisions for the company.
Overall, legal entities in Russia help people to work together to do business in a way that is fair and responsible.
The first type is called a sole proprietorship, which is like having only one person in charge of the business. This person is responsible for all the good things and bad things that happen in the business, and they may have to pay for any problems that come up.
The second type of legal entity is called a partnership, which is when two or more people work together to run a business. Each person has their own responsibilities, and they usually split the profits and losses equally.
The third type is a limited liability company or LLC, which is a group of people who share ownership and responsibilities for the business. They can hire employees, borrow money, and pay taxes like their own separate person, but they are not personally responsible for any debt or financial problems that the company might have.
Lastly, there is a joint-stock company, which is like a big group of people who own parts of the company by buying and selling shares. They can also elect a board of directors to make decisions for the company.
Overall, legal entities in Russia help people to work together to do business in a way that is fair and responsible.