You are creative social entrepreneur? A designer, an artist, a craftmaker.. and want to create a social venture in order to put your creativity at good use?
Well, first of all, congratulations for your ambition! The world can only become a better place if us, creative people, imagine AND implement our ideas to build a better future.
Talking about implementation, have you decided which legal status corresponds best to your social venture project?
Here are 3 simple steps I followed when setting up Creators for Good. Hope this helps!
Step #1: list the legal entities available in your country
Before choosing, you better know what choices you have ;)
Depending on where you are going to start your social venture, legal entities names and benefits will vary. Some countries have a specific status for social ventures or social businesses, others don’t. No panic, there will sure be a solution for you too ;)
For this first step, google (or yahoo or whatever browser you prefer;) will be your best friend. Visiting a couple of websites will give you a nice overview of what is possible for you to create, and the specificities of each legal status.
Step #2: get help from your local chamber of commerce
Weather you can find a local public entity specialized in social business or not, there sure is a chamber of commerce in your locality who can help you have more info about legal registrations.
This can help you chop down the list you started all alone on the Internet, and get more info about the benefits of each one of them. Cost associated to set it up? Easy to set and to close (if needed)? Preferable for public tenders? Allows you to get grants from the government? And what about taxes?
For this second step, an accountant can also be of great help ;)
Step #3 : contact other entrepreneurs in the 2 or 3 best-looking legal entities
You chopped down your list to “association, or cooperative, or limited company”? Well, time for you to get a taste from reality!
Prepare a simple 3 to 5 question list (How easy was it set up? How easy is it to run? What are the key benefits? etc..) and start asking entrepreneurs in your network. They can be actual friends, or Linkedin connections. You can also post you questions in a facebook or linkedin group – many people you don’t know personally are going to be happy to help! Promise ;)
Voila! After following those 3 simple steps, you now have a clear vision of which legal status is best for your social venture. All you need now is to implement!
Setting up a legal entity for your social venture is one of the first step to bring your dream social impact into reality. It is important on a legal standpoint, but also for your credibility towards employees, partners, clients and potential investors. If you are administrative-allergic, just look at the bright side: these 3 steps are super-simple to follow, and can open some unexpected doors. Getting help from the outside world about your social venture can be an occasion for networking, finding partners, potential investors, or more!
Oh, I almost forgot: step #4 is to share this article with other creative social entrepreneurs like you, who could benefit from it too! ;)
And if you have any questions or comments, do not hesitate to write below, I’ll make sure I answer them myself (true).
All the best,