2 ms·
In a 1-person company, who or what generates a profit?
by jameslk 1mo ago
In a 1-person company, who or what generates a profit?
- root_axis 1mo agoOne person isn't a company. Legally maybe, but there's no point in a company if you can profitably do all the labor yourself.
- speleding 1mo agoThere are holding companies with zero employees. They typically pay a management fee to someone.
- jameslk 1mo agoAt what point does a company become a company if one person doesn’t make a company? What’s the threshold for non-labor where a company becomes a company?
- root_axis 1mo agoI'd start with division of labor as a minimum.
- raegis 1mo agoAttorneys commonly do this.
- sokoloff 1mo agoI may be able to do all the labor myself, but need investors because I can’t afford the capital. I may be able to do all the labor myself, but want to ensure continuity beyond my ability or interest to do the labor myself. (Sometimes this is by my wish; sometimes by the wish of consumers of my service.) I may be able to do all the labor myself, but not want to expose my entire net worth to the financial obligations of the company. There are plenty of cases where a single person company makes good sense.
- binary132 1mo ago“I am actually the CEO of my basement office business” was not the corporate topology I was addressing with my comment.