I am thinking of setting up a small company to start out. However, I heard that in order to expand it beyond a certain threshold, it is mandatory for me to go public and hence, allow others to buy into the shares of my company? Hence, my question is: Is there anyway I can still own 100% of the company regardless of its size?
If you're a lawyer or anyone trained in this field, it'll be much appreciate if you could state so as well when answering.
2007-03-30 15:13:46 · 3 answers · asked by lordxeragon 1 in Business & Finance ➔ Other - Business & Finance
Of course it's always possible to own a large company as sole proprietor. The reason why you should sell shares in order to expand is to raise enough capital for the company to finance the expansion. It is also easier to apply for financing from banks if the company is a corporation. But if you can raise the capital yourself, then you can retain your sole proprietorship of the company.
One option is to sell shares but you retain majority of the company's share, say 75% or 80%. As long as you have majority of the stocks, you still have control of the company.
2007-03-30 15:25:19 · answer #1 · answered by Toffee Nut 3 · 1⤊ 0⤋
Not neccessarily. UPS was founded in 1907 (with $100 James Casey borrowed from someone) and it didn't go public until 1999. If you have a dream and the will to stick with it, even when things look bad, anything is possible.
2007-03-30 22:19:30 · answer #2 · answered by Mariposa 7 · 0⤊ 0⤋
There are several HUGE companies that are privately owned (e.g. Cargill and M&M Mars). There's no requirement for a company to become public once it reaches a certain size.
You can certainly own 100% of a huge company.
2007-03-30 22:41:24 · answer #3 · answered by Oh Boy! 5 · 0⤊ 0⤋