The most common question that natural persons have when establishing a company to engage in a specific activity of a small or medium-sized business is in what form they want to establish that company.

In the Republic of Serbia, natural persons can engage in their activities as entrepreneurs or by establishing a company in the following forms:

• Joint stock company;
• Limited liability company;
• Limited partnership;
• Partnership.

In practice, natural persons who want to perform the activity of a small/medium-sized enterprise, have the most dilemma, whether to establish a company in the form of a limited liability company (LLC) or to perform their activity as an entrepreneur.

We can say that the main difference between the two forms of business organization is that the entrepreneur is responsible for all obligations with his entire assets (and personal assets), while in LLCs, the member (founder) is not responsible for his personal assets, but the company is responsible for his assets, and the member (founder) is responsible for the amount of his contribution, which is a minimum of RSD 100.

The procedure for establishment (registration) of business companies and entrepreneurs is carried out before the Agency for Business Registers ("APR"), by submitting a single registration application, along with submitting other relevant documents.