The GoBusiness Guide to deciding your business structure

When Joel Lim and his two business partners first decided to convert their digital magazine venture into a full-fledged business, they had no idea where to begin.

“We were wondering, how do we even get started with the business? How do we start registering? How do we know what kind of things to look out for?” shares Joel. “All these things, we didn’t learn in school,” he adds.

“As any millennial or Gen Z person does, we went to Google and searched how to start a business in Singapore,” he recounts. That was when they discovered GoBusiness, where they found the Start-up Guide which gave them the stepping stones to start their business.

Establishing a business structure

The GoBusiness Start-up Guide became the “masterplan” which Joel and his partners referred to in the beginning stages of their business. “We literally followed every single step,” he shares.

Based on the guide, one of the first decisions Joel and his partners had to make was which business structure they would like to have. As new entrepreneurs without a background in business, terms like ‘Sole Proprietorship’, ‘Limited Partnership’ or ‘Limited Liability Partnership’ were confusing for them.

Speaking to friends and peers didn’t help them in making a decision either, as they received varied recommendations from different people. But the decision really depends on the needs, concerns, and wants of the people who want to start a business together, highlights Joel.

The GoBusiness Start-up Guide provided them with the information they needed to make a decision, says Joel.

For example, GoBusiness highlighted that a Sole Proprietorship structure only comprised one business owner, he explains. “He’s also entirely responsible for all the debts and legal actions against the business. That was too much responsibility for me as an individual,” he continues.

With the different explanations provided by GoBusiness, Joel and his partners were “a lot more informed” when entering a discussion for which business structure they would prefer.

“The discussion could be a lot more productive, whereby we listed out the pros and cons and why this is something that each one of us would personally prefer,” he adds.

Eventually, the trio decided on the business structure of a Local Company, where the company and business owners are viewed as separate entities. The structure of a Local Company also allowed them to have multiple owners and directors on board, which suited their needs.

Additionally, the GoBusiness platform also recommended what kind of questions business owners should ask before deciding on their business structure, says Joel. Answering these questions helped reassure him and his partners that the business structure of a Local Company is the right decision for them, he says.

Importance of a strong business foundation

Having GoBusiness’ guidance on the beginning stages of starting their business helped to alleviate the apprehension Joel felt in becoming an entrepreneur.

“[There’s a] fear of messing up the entire process because you’ve never done it before,” he shares. “It’s having the confidence that our foundations are strong in that we have set up all the administrative portions of our work that allows us to be confident in the work that we do.”

Following the GoBusiness guide also helped Joel save time. He explains, “There are a lot of hidden things you have to do that people normally wouldn’t think about. For example, starting a corporate bank account, or learning how to put together a shareholder agreement.”

With this information laid out in the guide, Joel did not need to spend additional time doing research or figuring out the processes. This allowed them to focus on growing the business.

“In the beginning phase of your business, you really want to spend as much time as you can on the core business versus other administrative things,” he adds.

ZYRUP Media is growing at a steady pace today, reveals Joel. As they grow, Joel is “keeping GoBusiness in the back pocket.”

“Right now, we finished the six steps of starting a business, so we are getting things going. As we continue doing that, we want to look at different types of grants moving forward. That is the next thing that we’ll use GoBusiness for.”

This article is accurate as at 16 Feb 2022