{"id":22376,"date":"2025-04-26T12:08:05","date_gmt":"2025-04-26T05:08:05","guid":{"rendered":"https:\/\/dps.media\/so-sanh-mo-ho-kinh-doanh-va-cong-ty-tnhh-cho-nguoi-moi\/"},"modified":"2025-04-26T12:08:07","modified_gmt":"2025-04-26T05:08:07","slug":"comparison-of-business-licenses-and-limited-liability-companies-for-beginners","status":"publish","type":"post","link":"https:\/\/dps.media\/en\/comparison-of-business-licenses-and-limited-liability-companies-for-beginners\/","title":{"rendered":"Comparison of business registration and limited liability company for beginners"},"content":{"rendered":"<?xml encoding=\"utf-8\" ?><p> If you are hesitating between opening a business household or establishing a limited liability company, then please note: <strong>Choosing correctly from the start will determine the long-term development potential of your business<\/strong>. According to statistics from the General Statistics Office of Vietnam, in 2023 alone, more than 351 small businesses had to change their operating model after 1 year due to an initially unsuitable legal choice. <em>Therefore, understanding the difference from the beginning is an extremely important step to save costs, avoid legal risks, and maximize growth potential.<\/em><\/p><p>According to consulting experience for hundreds of SMEs at DPS.MEDIA, <strong>business households are suitable for small scale, simple operations, while limited liability companies are suitable for solid business plans and long-term expansion<\/strong>. Business households have quick procedures, low costs, simple tax obligations but are limited in labor quantity (maximum 10 people) and owners bear unlimited liability with all personal assets. <em>\u0110i\u1ec1u n\u00e0y s\u1ebd tr\u1edf th\u00e0nh \u200cr\u00e0o c\u1ea3n l\u1edbn khi doanh nghi\u1ec7p c\u1ea7n ph\u00e1t tri\u1ec3n\u200d ho\u1eb7c g\u1ecdi v\u1ed1n.<\/em><\/p><p>Conversely, limited liability companies <strong>help you separate personal assets and business assets,<\/strong>reduce personal financial risks. Businesses with independent legal entity status can easily expand their workforce, access bank loans, sign large contracts, and build a more solid brand. However, limited liability companies require more solid management processes, regular tax reporting, and a professional operational team.<\/p><p><strong>Choosing a business model is not only an administrative procedure<\/strong>, but also the strategic foundation for the strong growth of the brand in the future. Whether you operate a coffee shop, a local transport company, or a technology firm, the appropriate legal model will determine your growth capacity and reputation with partners and customers from the start.<\/p><p><em>Based on each business goal, financial resources, and development plan in the next 1\u20133 years<\/em>, DPS.MEDIA recommends:  <\/p><ul>\n<li>If you only want to run a small-scale business, with little capital and low risk \u2192 prioritize a business household.  <\/li>\n<li>If you aim for rapid growth, expanding the team, seeking investors \u2192 you should establish a limited liability company (LLC) right from the start to avoid wasting time and costs on later transitions.  <\/li>\n<\/ul><p><strong>Understanding clearly to choose correctly from the beginning \u2013 that is how smart entrepreneurs start their successful business journey.<\/strong> And if you need further consultation to make decisions suitable for your long-term development strategy, <em>let DPS.MEDIA accompany you.<\/em><br><img decoding=\"async\" class=\"kimage_class\" src=\"https:\/\/vietthang.com.vn\/uploads\/about\/gcn-dkkd-21_07_2015.jpg\" alt=\"Understand clearly the legal nature between business households and limited liability companies\" title=\"\"><\/p><h2 id=\"hieu-ro-ban-chat-phap-ly-giua-ho-kinh-doanh-va-cong-ty-tnhh\">Understand the legal nature between business households and limited liability companies<\/h2><h3>Legal framework and legal entity status<\/h3><p>Regarding the essence, <strong>a business household<\/strong> is a model of individual business registration, without legal entity status. The representative (household owner) must bear full responsibility with personal assets. Conversely, <strong>a limited liability company (LLC)<\/strong> is an independent legal entity under the provisions of the 2015 Civil Code, with limited financial liability at the charter capital. According to a Harvard Business Review industry report, this difference deeply affects the ability to expand and the legal safety level of the enterprise.<\/p><p>Based on practical experience from DPS.MEDIA's SME support projects, we recognize that technology start-ups often choose LLCs to easily raise capital and sign contracts with foreign partners, while traditional business households (such as restaurants, retail stores) are more flexible in operating costs and initial tax procedures.<\/p><table class=\"wp-block-table is-style-stripes\">\n<thead>\n<tr>\n<th>Criteria<\/th>\n<th>Business household<\/th>\n<th>Limited liability company (LLC)<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Legal entity status<\/td>\n<td>No<\/td>\n<td>Yes<\/td>\n<\/tr>\n<tr>\n<td>Liability regime<\/td>\n<td>Unlimited (personal assets)<\/td>\n<td>Limited (contributed capital)<\/td>\n<\/tr>\n<tr>\n<td>Organizational scale<\/td>\n<td>Small, under 10 employees<\/td>\n<td>Flexible, easy to expand<\/td>\n<\/tr>\n<tr>\n<td>Tax and accounting<\/td>\n<td>Simple<\/td>\n<td>More complex, requires accounting<\/td>\n<\/tr>\n<\/tbody>\n<\/table><h3>Impact on long-term development strategy<\/h3><p>T\u1eeb nghi\u00ean c\u1ee9u \u201cSME\u200d Growth Pathways in Southeast Asia\u201d (World Bank, 2022), \u200dm\u00f4 h\u00ecnh c\u00f4ng ty TNHH \u0111\u01b0\u1ee3c ch\u1ee9ng minh c\u00f3\u200c kh\u1ea3 n\u0103ng h\u1ea5p d\u1eabn v\u1ed1n \u0111\u1ea7u t\u01b0 t\u1ed1t h\u01a1n nh\u1edd \u200ds\u1ef1 minh b\u1ea1ch v\u00e0 uy t\u00edn ph\u00e1p l\u00fd. DPS.MEDIA \u0111\u00e3 t\u01b0 v\u1ea5n cho d\u1ef1 \u00e1n \u201cGreenLeaf \u200c- n\u00f4ng s\u1ea3n \u200bs\u1ea1ch\u201d chuy\u1ec3n \u0111\u1ed5i t\u1eeb h\u1ed9 kinh \u2062doanh l\u00ean c\u00f4ng ty TNHH trong\u200d giai \u0111o\u1ea1n scale-up, gi\u00fap h\u1ecd k\u00fd th\u00e0nh c\u00f4ng h\u1ee3p \u0111\u1ed3ng ph\u00e2n\u2062 ph\u1ed1i v\u1edbi\u200b c\u00e1c si\u00eau th\u1ecb l\u1edbn.<\/p><ul>\n<li><strong>Business household<\/strong>: suitable for the product or service trial phase.<\/li>\n<li><strong>Limited liability company (LLC)<\/strong>: suitable when the business aims to build a long-term brand and expand market scale.<\/li>\n<\/ul><p>Looking broader, choosing the right model is not only a legal matter but also a strategic orientation for the sustainable development journey of every SME in Vietnam.<\/p><p><img decoding=\"async\" class=\"kimage_class\" src=\"https:\/\/image.luatvietnam.vn\/uploaded\/twebp\/images\/original\/2022\/07\/29\/online-business-registration-1_2907102503.jpg\" alt=\"Strengths and weaknesses when choosing the business household model\" title=\"\"><\/p><h2 id=\"diem-manh-va-diem-yeu-khi-lua-chon-mo-hinh-ho-kinh-doanh\">Strengths and weaknesses when choosing a business household model<\/h2><h3>\u01afu\u2062 \u0111i\u1ec3m n\u1ed5i b\u1eadt: \u0110\u01a1n gi\u1ea3n & ti\u1ebft ki\u1ec7m chi ph\u00ed<\/h3><p>From DPS.MEDIA's practical experience advising over 500+ SMEs, business households are the ideal choice for those who want to start <strong>quickly<\/strong> and <strong>with minimal administrative procedures.<\/strong>Some notable advantages:<\/p><ul>\n<li><strong>Establishment procedures<\/strong> are extremely simple, can be completed within 3-5 working days.<\/li>\n<li><strong>Operating costs<\/strong> are low, no requirement for complex financial reporting like LLCs.<\/li>\n<li><strong>Flexibility<\/strong> to change industry or business location whenever necessary.<\/li>\n<\/ul><p>A real example from a customer of DPS.MEDIA - Ms. Ngoc Anh, owner of GUMI TEA milk tea shop (Ho Chi Minh City), chose the household business model to save 45% in operating costs compared to the enterprise structure, allowing her to focus resources on marketing activities and product development from day one.<\/p><h3>Limitations: Risks and expansion possibilities<\/h3><p>Although convenient, the household business model also has some weaknesses that you need to consider:<\/p><ul>\n<li><strong>Liability regime<\/strong> unlimited: The owner must bear all financial risks with personal assets.<\/li>\n<li><strong>Expansion capability<\/strong> is limited: Household businesses are not allowed to raise capital or have multiple owners.<\/li>\n<li><strong>Commercial reputation<\/strong> is lower than limited liability companies in the eyes of investors and large customers.<\/li>\n<\/ul><p>In the research of <em>Vietnam Chamber of Commerce and Industry (VCCI)<\/em>, only 15% household businesses self-developed into official enterprises after 3 years of operation. This shows that if you plan to build a solid brand and expand on a large scale, household businesses may not be the optimal long-term foundation.<\/p><h3>Quick summary table: Advantages and disadvantages<\/h3><table class=\"wp-block-table is-style-stripes\">\n<thead>\n<tr>\n<th>Criteria<\/th>\n<th>Business household<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Establishment<\/td>\n<td>Simple, fast<\/td>\n<\/tr>\n<tr>\n<td>Capital<\/td>\n<td>Self-managed, no capital mobilization<\/td>\n<\/tr>\n<tr>\n<td>Legal liability<\/td>\n<td>Unlimited (personal assets)<\/td>\n<\/tr>\n<tr>\n<td>Scale expansion<\/td>\n<td>More difficult than limited liability companies<\/td>\n<\/tr>\n<tr>\n<td>Operating costs<\/td>\n<td>Low<\/td>\n<\/tr>\n<\/tbody>\n<\/table><p>G\u00f3c\u200b nh\u00ecn c\u1ee7a DPS.MEDIA cho th\u1ea5y: m\u00f4 h\u00ecnh h\u1ed9 kinh doanh ph\u00f9 h\u1ee3p v\u1edbi giai \u0111o\u1ea1n\u2064 \u201cv\u01b0\u1eddn \u01b0\u01a1m\u201d \u00fd t\u01b0\u1edfng kinh doanh. Tuy nhi\u00ean, v\u1edbi doanh nh\u00e2n c\u00f3 tham v\u1ecdng x\u00e2y d\u1ef1ng th\u01b0\u01a1ng hi\u1ec7u b\u1ec1n v\u1eefng, ph\u00e1t tri\u1ec3n \u2063\u0111\u1ed9i ng\u0169, v\u00e0 ti\u1ebfp c\u1eadn ngu\u1ed3n \u2062v\u1ed1n l\u1edbn, c\u00f4ng \u2063ty TNHH l\u1ea1i l\u00e0 l\u1ef1a ch\u1ecdn chi\u1ebfn l\u01b0\u1ee3c kh\u00f4n ngoan h\u01a1n.<\/p><p><img decoding=\"async\" class=\"kimage_class\" src=\"https:\/\/cdn.vietnambiz.vn\/2019\/10\/19\/photo-1-15715041762291230237833.jpg\" alt=\"Advantages and challenges when starting up with a limited liability company\" title=\"\"><\/p><h2 id=\"uu-diem-va-thach-thuc-khi-khoi-nghiep-voi-cong-ty-tnhh\">Advantages and challenges when starting a business with a limited liability company<\/h2><h3>Main advantages: Protect personal assets and professionalism<\/h3><p>According to the analysis from the Vietnam SME Whitebook 2023 report, more than 65% new enterprises in Vietnam choose the limited liability company model thanks to its outstanding advantages in <strong>legal status<\/strong> and <strong>capital mobilization ability<\/strong>. Some notable advantages include:<\/p><ul>\n<li><strong>Limited liability<\/strong>The owner only bears responsibility within the contributed capital, minimizing personal asset risks.<\/li>\n<li><strong>Easy scale expansion<\/strong>Compared to household businesses, limited liability companies easily attract investors and strategic partners.<\/li>\n<li><strong>Increased credibility<\/strong>B2B partners, especially in import-export or technology sectors, often prioritize transactions with limited liability companies.<\/li>\n<\/ul><p><em>Case study:<\/em> At DPS.MEDIA, a customer in the natural cosmetics field switched from a personal household business to a limited liability company after only 8 months of operation. As a result, in the first year alone after changing the model, her revenue grew 2.1 times thanks to signing 3 large distribution contracts. This is a vivid proof that <strong>\"a suitable legal form will determine the speed of business development\"<\/strong>.<\/p><h3>Challenges to note: Complex legal procedures, high compliance costs<\/h3><p>Therefore, from consulting experience with over 200 SMEs at DPS.MEDIA, we realize that not every entrepreneur is ready to face the difficulties that the limited liability company model brings, such as:<\/p><ul>\n<li><strong>Complex operation<\/strong>Managing accounting, periodic tax reporting, and labor and social insurance procedures require professional expertise from the start.<\/li>\n<li><strong>Hidden costs<\/strong>Besides initial establishment fees, businesses must invest in accounting, auditing, and internal management software.<\/li>\n<li><strong>Strict financial transparency requirements<\/strong>: New regulations on financial transaction control require LLC enterprises to maintain complete and accurate accounting books in accordance with IFRS\/VAS standards.<\/li>\n<\/ul><table class=\"wp-block-table is-style-stripes\">\n<thead>\n<tr>\n<th>Factors<\/th>\n<th>Business household<\/th>\n<th>Limited Liability Company<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Minimum capital<\/td>\n<td>No requirement<\/td>\n<td>No requirement<\/td>\n<\/tr>\n<tr>\n<td>Liability regime<\/td>\n<td>Unlimited<\/td>\n<td>Limited<\/td>\n<\/tr>\n<tr>\n<td>Tax<\/td>\n<td>Fixed or based on revenue<\/td>\n<td>Theo thu\u1ebf TNDN \u200d& GTGT<\/td>\n<\/tr>\n<tr>\n<td>Expansion capability<\/td>\n<td>Limit<\/td>\n<td>Very high<\/td>\n<\/tr>\n<tr>\n<td>Operating costs<\/td>\n<td>Low<\/td>\n<td>Higher<\/td>\n<\/tr>\n<\/tbody>\n<\/table><p>We recommend: If your goal is to develop into a national or international brand, starting a business with an LLC <strong>needs to be carefully calculated from the beginning<\/strong>. Prepare a long-term strategy, financial plan, and operational team from day one to avoid \u201cpremature death\u201d in the middle of the startup journey.<\/p><p><img decoding=\"async\" class=\"kimage_class\" src=\"https:\/\/vinabookkeeping.com\/wp-content\/uploads\/2023\/09\/Company-registration-Vinabookkeping.jpg\" alt=\"Tax rates and financial obligations you need to consider\" title=\"\"><\/p><h2 id=\"thue-suat-va-nghia-vu-tai-chinh-ban-can-can-nhac\">Tax rates and financial obligations you need to consider<\/h2><h3>Applicable tax rates for business households and limited liability companies<\/h3><p>According to the records from <strong>DPS.MEDIA<\/strong>, when opening a personal business household, you will be subject to fixed tax, including:<\/p><ul>\n<li><strong>Value Added Tax (VAT)<\/strong><\/li>\n<li><strong>Personal Income Tax (PIT)<\/strong><\/li>\n<li><strong>License fee<\/strong><\/li>\n<\/ul><p>Meanwhile, an LLC will calculate tax based on actual revenue, with details as follows:<\/p><ul>\n<li><strong>VAT<\/strong>: according to the deduction or direct method<\/li>\n<li><strong>Corporate Income Tax (CIT)<\/strong>: 20% on pre-tax profit<\/li>\n<li><strong>Personal Income Tax (PIT)<\/strong>: withholding tax at source for employees<\/li>\n<li><strong>License fee<\/strong><\/li>\n<\/ul><h3>Quick comparison of types of taxes and arising costs<\/h3><table class=\"wp-block-table is-style-stripes\">\n<thead>\n<tr>\n<th>Summary<\/th>\n<th>Business household<\/th>\n<th>Limited liability company (LLC)<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Tax rate<\/td>\n<td>fixed, stable<\/td>\n<td>Deduction, fluctuates according to profit<\/td>\n<\/tr>\n<tr>\n<td>Accounting cost<\/td>\n<td>Low, simple<\/td>\n<td>High, requires professional accounting<\/td>\n<\/tr>\n<tr>\n<td>Financial liability<\/td>\n<td>Unlimited with all assets<\/td>\n<td>Limited to contributed capital<\/td>\n<\/tr>\n<\/tbody>\n<\/table><h3>G\u00f3c nh\u00ecn t\u1eeb th\u1ef1c\u2064 t\u1ebf: Case\u2063 study v\u1ec1 h\u1ed9 kinh doanh l\u0129nh v\u1ef1c F&B<\/h3><p>Through consulting for a small coffee shop chain in Ho Chi Minh City, <strong>DPS.MEDIA<\/strong> it was found that the household business model helps save accounting costs up to 70 million VND, but faces difficulties when wanting to raise capital or expand quickly. Conversely, in a startup support project for Food Technology, opening an LLC helps the founding team easily convince investors thanks to financial transparency \u2013 although operational costs are higher, about 30 million VND\/year.<\/p><p>As research from the National Economics University in 2023 pointed out, the choice of model needs to be calculated based on <strong>long-term development strategy<\/strong>, instead of only considering the upfront cost factor.<\/p><p><img decoding=\"async\" class=\"kimage_class\" src=\"https:\/\/pcb.vn\/en\/images\/TinTuc\/giay-chung-nhan-kinh-doanh-pcb-p1.jpg\" alt=\"Detailed legal establishment procedures and requirements for each type\" title=\"\"><\/p><h2 id=\"quy-trinh-thanh-lap-va-yeu-cau-phap-ly-chi-tiet-cho-tung-loai-hinh\">Establishment procedures and detailed legal requirements for each type<\/h2><h3>Documents, procedures, and time to open an individual business household<\/h3><p>According to analysis from DPS.MEDIA, individual business households are an optimal choice for individuals and families who want to run small-scale businesses with a compact scale. The current business household registration process is very simple:<\/p><ul>\n<li><strong>Documents needed:<\/strong> Application for business household registration, a copy of a valid personal identification document.<\/li>\n<li><strong>Place to submit documents:<\/strong> Ph\u00f2ng Kinh t\u1ebf ho\u1eb7c\u2063 Ph\u00f2ng T\u00e0i ch\u00ednh \u2013 K\u1ebf ho\u1ea1ch c\u1ea5p\u200d qu\u1eadn\/huy\u1ec7n.<\/li>\n<li><strong>Processing time:<\/strong> About 3-5 working days.<\/li>\n<li><strong>Cost:<\/strong> L\u1ec7 ph\u00ed kho\u1ea3ng 100.000 \u2013 300.000 VN\u0110 tu\u1ef3 \u2063\u0111\u1ecba ph\u01b0\u01a1ng.<\/li>\n<\/ul><p>An important note, according to the Ministry of Planning and Investment (2022), business households are only allowed to use fewer than 10 employees and are not permitted to issue VAT invoices unless they convert their business model.<\/p><h3>Establishing a limited liability company: Multiple levels, multiple choices<\/h3><p>For enterprises planning to expand or needing to protect personal assets, DPS.MEDIA recommends choosing a Limited Liability Company, especially the model of a one-member or two-or-more-member Limited Liability Company. The detailed establishment process is as follows:<\/p><ul>\n<li><strong>Legal documents:<\/strong> Company charter, application for enterprise registration, list of members, and accompanying personal identification documents.<\/li>\n<li><strong>Place to submit documents:<\/strong> Business Registration Office at the Department of Planning and Investment where the enterprise is headquartered.<\/li>\n<li><strong>Processing time:<\/strong> About 5-7 working days.<\/li>\n<li><strong>Legal obligations:<\/strong> Register tax, bank account, print invoices, and compulsory social insurance contributions for employees.<\/li>\n<\/ul><p>Especially, according to the World Bank\u2019s Doing Business Report 2020, the process of establishing a company in Vietnam has been significantly shortened; however, businesses still need to strictly comply with procedures to avoid legal risks later.<\/p><h3>Quick comparison table between business households and limited liability companies<\/h3><table class=\"wp-block-table\">\n<thead>\n<tr>\n<th>criteria<\/th>\n<th>Individual business household<\/th>\n<th>Limited liability company (LLC)<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Suitable subjects<\/td>\n<td>Small business, family household<\/td>\n<td>Enterprises with expansion orientation<\/td>\n<\/tr>\n<tr>\n<td>Independent legal entity<\/td>\n<td>No<\/td>\n<td>Yes<\/td>\n<\/tr>\n<tr>\n<td>Capital mobilization<\/td>\n<td>Limitations<\/td>\n<td>More flexible<\/td>\n<\/tr>\n<tr>\n<td>Management cost<\/td>\n<td>Low<\/td>\n<td>Higher<\/td>\n<\/tr>\n<tr>\n<td>Procedures and documents<\/td>\n<td>Simple<\/td>\n<td>More complex<\/td>\n<\/tr>\n<\/tbody>\n<\/table><p>Real case study: a customer of DPS.MEDIA \u2013 Ms. Linh, owner of an online bakery, initially registered as a business household to test the market. After one year, when revenue exceeded 2 billion VND\/year and she needed to open additional branches, she converted to a Limited Liability Company model to facilitate signing agency contracts and importing raw materials.<\/p><p>From DPS.MEDIA\u2019s perspective, <a href=\"https:\/\/ocd.vn\/mo-hinh-marketing-kinh-dien-nhat-moi-thoi-dai\/\" title=\"20 classic marketing models of all time\" rel=\"nofollow noopener\" target=\"_blank\">choosing the model from the beginning not only saves short-term costs but also opens up opportunities to optimize marketing strategies and sustainable long-term growth.<\/a>.<\/p><p><img decoding=\"async\" class=\"kimage_class\" src=\"https:\/\/images.prismic.io\/statrys\/e69b8b7a-49bd-4a36-8609-71f9154c014f_HK+business+registration+-+Sample+%28Web%29+%281%29.jpg\" alt=\"Management aspects and long-term development scale\" title=\"\"><\/p><h2 id=\"khia-canh-quan-tri-va-quy-mo-phat-trien-dai-han\">Management aspects and long-term development scale<\/h2><h3>Flexibility in management and readiness for expansion<\/h3><p>From the experience of implementing solutions for hundreds of SMEs at DPS.MEDIA, we have observed that <strong>a business household<\/strong> it is easy to operate in the initial phase thanks to simplified management processes and fewer legal obstacles. Business owners can make quick decisions, but this also means that initiatives to expand scale are limited due to the management nature heavily influenced by personal factors.<\/p><p>Meanwhile, <strong>a limited liability company (LLC)<\/strong> a more stringent legal framework helps businesses easily build a professional system right from the initial organizational blueprint. This lays the foundation for strong subsequent growth, especially when raising capital or transforming the business model.<\/p><h3>Practical comparison through management criteria and development orientation<\/h3><table class=\"wp-block-table is-style-stripes\">\n<thead>\n<tr>\n<th>criteria<\/th>\n<th>Household business<\/th>\n<th>Limited Liability Company<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td><strong>Decision-making mechanism<\/strong><\/td>\n<td>Household owner self-decides, quickly<\/td>\n<td>Consensus process, requires unity<\/td>\n<\/tr>\n<tr>\n<td><strong>Internal management system<\/strong><\/td>\n<td>Simplified, based on personal experience<\/td>\n<td>Professional, clear division of responsibilities<\/td>\n<\/tr>\n<tr>\n<td><strong>Potential for scale expansion<\/strong><\/td>\n<td>Limited, dependent on household owner<\/td>\n<td>Flexible, supports sustainable growth<\/td>\n<\/tr>\n<\/tbody>\n<\/table><h3>Case study: Lessons from the practical Vietnamese market<\/h3><p>Typical, customer projects <strong>Green House<\/strong> \u2013 a chain of agricultural material stores in Can Tho \u2013 initially operating as a household business. When the number of branches exceeded the capacity, issues related to accounting, inventory control, and human resource management began to cause bottlenecks. After consulting with DPS.MEDIA, Green House transformed into a Limited Liability Company. Just 18 months later, it expanded to over 10 branches and successfully raised capital from a local investment fund, something nearly impossible if it had maintained the household business model.<\/p><p>Qua\u2064 ph\u00e2n t\u00edch t\u1eeb t\u00e0i\u200d li\u1ec7u nghi\u00ean \u200bc\u1ee9u c\u1ee7a\u200b World Bank \u2063(B\u00e1o c\u00e1o \u201cEnhancing Enterprise Growth\u200b in Vietnam\u201d, 2022), vi\u1ec7c thi\u1ebft l\u1eadp ph\u00e1p nh\u00e2n chuy\u00ean nghi\u1ec7p ngay \u2063t\u1eeb \u0111\u1ea7u c\u00f3 \u200cth\u1ec3 t\u0103ng g\u1ea5p ba l\u1ea7n c\u01a1 \u200dh\u1ed9i huy \u0111\u1ed9ng v\u1ed1n so \u2063v\u1edbi m\u00f4 h\u00ecnh kinh\u200c doanh c\u00e1 nh\u00e2n. \u0110i\u1ec1u \u2063n\u00e0y cho th\u1ea5y vi\u1ec7c l\u1ef1a ch\u1ecdn m\u00f4 h\u00ecnh ph\u00f9 \u200dh\u1ee3p kh\u00f4ng\u2064 ch\u1ec9 \u1ea3nh \u200dh\u01b0\u1edfng \u0111\u1ebfn hi\u1ec7n t\u1ea1i m\u00e0 c\u00f2n quy\u1ebft \u0111\u1ecbnh \u0111\u1ed9 cao m\u00e0 \u200cdoanh \u2063nghi\u1ec7p c\u00f3 th\u1ec3 v\u01b0\u01a1n t\u1edbi trong t\u01b0\u01a1ng lai.<\/p><p><img decoding=\"async\" class=\"kimage_class\" src=\"https:\/\/cdn.vietnambiz.vn\/2020\/1\/13\/business-registration-in-vietnam-with-gbs-15789287166721715501322.jpg\" alt=\"Advice from DPS.MEDIA to help SMEs choose the most suitable model\" title=\"\"><\/p><h2 id=\"loi-khuyen-tu-dps-media-giup-smes-chon-lua-mo-hinh-phu-hop-nhat\">Advice from DPS.MEDIA to help SMEs choose the most suitable model<\/h2><h3>Quick analysis: When to open a business household, when to establish a limited liability company?<\/h3><p>From DPS.MEDIA\u2019s perspective \u2013 a partner of hundreds of Vietnamese SMEs, we recognize <strong>the choice between household business and Limited Liability Company<\/strong> not only depends on costs or simple procedures but must also be based on <strong>the long-term strategy<\/strong> of the business. Based on a synthesis from the RMIT University 2023 Small Business Research and the Vietnam Business White Paper, we recommend:<\/p><ul>\n<li><strong>If operating individually, small scale, low legal risk:<\/strong> Household business is a reasonable choice due to simple establishment procedures and low operating costs.<\/li>\n<li><strong>If aiming to expand, raise capital, develop a professional brand:<\/strong> Limited Liability Company should be considered because it has legal entity status, helping you separate personal and business assets.<\/li>\n<\/ul><h3>Quick comparison table of business households and limited liability companies<\/h3><table class=\"wp-block-table is-style-stripes\">\n<thead>\n<tr>\n<th>Factors<\/th>\n<th>Business household<\/th>\n<th>Limited liability company (LLC)<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Staff scale<\/td>\n<td>\u2264 10 people<\/td>\n<td>Unlimited<\/td>\n<\/tr>\n<tr>\n<td>Operating costs<\/td>\n<td>Lower<\/td>\n<td>Higher<\/td>\n<\/tr>\n<tr>\n<td>Capital borrowing ability<\/td>\n<td>Limitations<\/td>\n<td>Better<\/td>\n<\/tr>\n<tr>\n<td>Legal liability<\/td>\n<td>Entire personal assets<\/td>\n<td>Company assets<\/td>\n<\/tr>\n<tr>\n<td>Capital raising<\/td>\n<td>Almost impossible<\/td>\n<td>Easier<\/td>\n<\/tr>\n<\/tbody>\n<\/table><h3>Real case study: Why did a milk tea startup choose a limited liability company?<\/h3><p>Trong n\u0103m\u200c 2023, DPS.MEDIA h\u1ed7 tr\u1ee3 m\u1ed9t startup F&B t\u1ea1i TP.HCM \u2013 th\u01b0\u01a1ng\u200d hi\u1ec7u tr\u00e0 s\u1eefa mang phong c\u00e1ch \u2063Nh\u1eadt \u2013 b\u01b0\u1edbc \u0111\u1ea7u h\u1ecd \u0111\u1ecbnh ch\u1ecdn h\u1ed9 kinh doanh \u0111\u1ec3 ti\u1ebft ki\u1ec7m\u2062 chi ph\u00ed.\u200c Tuy nhi\u00ean, <a href=\"https:\/\/dps.media\/en\/\" rel=\"nofollow\">through the analysis of the national franchise development process and the seed round fundraising plan from angel investors<\/a>, we propose to switch to <strong>establishing a 2-member limited liability company<\/strong>. This decision helps:<\/p><ul>\n<li>Expand the model to 5 branches after 8 months.<\/li>\n<li>Receive a 2 billion VND investment from local investment funds.<\/li>\n<li>Build a solid brand and have personnel clearly responsible for legal matters.<\/li>\n<\/ul><p>This shows, <strong>flexible models depending on development strategies<\/strong> are the most important factors that SMEs should not overlook.<\/p><h2 id=\"outro\">Key takeaways<\/h2><p>D\u00f9 l\u1ef1a ch\u1ecdn\u200c h\u00ecnh th\u1ee9c \u2063h\u1ed9 kinh doanh hay c\u00f4ng ty TNHH, m\u1ed7i \u2063quy\u1ebft \u0111\u1ecbnh\u2062 \u0111\u1ec1u c\u1ea7n xu\u1ea5t ph\u00e1t t\u1eeb m\u1ee5c ti\u00eau kinh doanh,\u2064 m\u00f4 h\u00ecnh \u200bv\u1eadn h\u00e0nh v\u00e0 t\u1ea7m nh\u00ecn \u200dph\u00e1t tri\u1ec3n d\u00e0i h\u1ea1n c\u1ee7a\u2063 b\u1ea1n. H\u1ed9 kinh doanh ph\u00f9 h\u1ee3p v\u1edbi nh\u1eefng ai mong mu\u1ed1n s\u1ef1\u2063 \u0111\u01a1n gi\u1ea3n, \u200dlinh ho\u1ea1t \u1edf quy m\u00f4 nh\u1ecf,\u2062 trong khi c\u00f4ng ty TNHH m\u1edf ra c\u01a1 h\u1ed9i x\u00e2y d\u1ef1ng th\u01b0\u01a1ng hi\u1ec7u b\u00e0i b\u1ea3n v\u00e0 t\u1ed1i\u2063 \u01b0u kh\u1ea3 n\u0103ng m\u1edf r\u1ed9ng. Kh\u00f4ng c\u00f3 l\u1ef1a\u2063 ch\u1ecdn \u201ct\u1ed1t nh\u1ea5t\u201d cho t\u1ea5t c\u1ea3, ch\u1ec9 c\u00f3 l\u1ef1a ch\u1ecdn\u200c \u201cph\u00f9 h\u1ee3p\u2064 nh\u1ea5t\u201d v\u1edbi ch\u00ednh b\u1ea1n trong\u200b t\u1eebng \u200dgiai \u0111o\u1ea1n.<\/p><p>From the perspective of DPS.MEDIA \u2014 a unit always accompanying Vietnamese SMEs on the digital transformation journey \u2014 we recognize: Choosing the right business form from the start helps businesses save costs, optimize operations, and achieve sustainable growth in an increasingly competitive digital environment. After selecting the model, you also need to build effective marketing strategies and create a professional brand image to conquer target customers.<\/p><p>If you are hesitating not only between business household and limited liability company but also want to learn more about factors such as suitable marketing strategies for each model, professional operation methods, or steps to expand business scale, DPS.MEDIA is always ready to accompany you. We encourage you to proactively research more, seek advice, and do not hesitate to experiment to find your own path.<\/p><p>Which choice are you leaning towards? Or do you have any concerns during the startup process? Please leave your comments below or join the discussion with the community to find the most suitable solutions together! <\/p>\n<style>\r\n.lwrp.link-whisper-related-posts{\r\n            \r\n            margin-top: 40px;\nmargin-bottom: 30px;\r\n        }\r\n        .lwrp .lwrp-title{\r\n            \r\n            \r\n        }.lwrp .lwrp-description{\r\n            \r\n            \r\n\r\n        }\r\n        .lwrp .lwrp-list-container{\r\n        }\r\n        .lwrp .lwrp-list-multi-container{\r\n            display: flex;\r\n        }\r\n        .lwrp .lwrp-list-double{\r\n            width: 48%;\r\n        }\r\n        .lwrp .lwrp-list-triple{\r\n            width: 32%;\r\n        }\r\n        .lwrp .lwrp-list-row-container{\r\n            display: flex;\r\n            justify-content: space-between;\r\n        }\r\n        .lwrp .lwrp-list-row-container .lwrp-list-item{\r\n            width: calc(33% - 20px);\r\n        }\r\n        .lwrp 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