The joint-stock company form provides a number of advantages:
- you can share your decisions on business activities with other partners;
- with this form, you can manage medium- and large-sized companies;
- your liability and that of your partners is limited to the value of the company's share capital;
- the economic and financial management is more easily controlled;
- if profits are high, there is an advantage in fiscal terms.
E.g.: suppose that the partners responsible for the Rosso e Nero snc joint-stock company possess, as part of their personal assets, properties worth 200,000 euros, securities worth 80,000 euros, two vehicles worth 50,000 euros and that their company has debts amounting to 50,000 euros; the shares owned by each partner amount to 2,000 euros. If the company is unable to pay its debts, creditors may require payment by each shareholder only up to the value of their shares, i.e. 2,000 euros.
E.g.: Mr. Giovanni Verdi opens a joint-stock company that makes a profit of 70,000 euros: taxes amount to 21,980 euros. If Mr. Verdi had opened his business as a sole proprietorship, the tax value would have been 23,370 euros, with a higher tax of 1,390 euros.
At the same time, the joint-stock company also has some disadvantages:
- as a corporate form, it is not advisable for small companies;
- it is an expensive corporate form;
- decisions mustbe made following special procedures;
- a yearly balance sheet must be drawn up and submitted;
- the company must be managed using an ordinary accounting scheme;
- to set it up, a written company charter drawn up by a notary public is required.
In conclusion, this is an appropriate legal form if you and your partners wish to make high-risk medium to large investments.