Private law corporations

Notes

Private law corporations Profitability x Philanthropy • Need to choose what’s your main purpose (profitability or philanthropy), for then to choose the legal form; • Philanthropy (associations and foundations), can have profits but it needs to be reinvested in the organization and their objective, can’t be imbursed by the founder. Can pay who works in the institution, but needs to be according to the market level. • Profitability • ULP, LTDA, SA (sociedades anônimas -> corporations); • Can have private foundations, but usually isn’t approved by stockholders because diminishes profit. Recently it’s been changing because these things can affect customer’s choices; • Profit  distribution of dividends by the company (they aren’t taxed yet in BR if the company is Brazilian (unless the other country has an agreement of double-tax with Brazil) because it considers that the company already paid tax, but gov. wants to put personal/individual income tax (if it really happens it would be reasonable that the gov. lowers the taxes for companies since they are very high))  and you should create a partnership to develop profitable activities; • Questions that need to be answered before setting...