The question arising for anyone wishing to enter upon a business activity or already engaged in business is what is the correct legal form. Should he operate in the market as a merchant, in a partnership or corporation or convert an already existing business into a different legal form? The legal form particularly determines the liability, capital resources and financial arrangements. On this also depend the management and supervision, the accounting and taxation of the undertaking. Furthermore, often questions of family and inheritance law must be heeded. All these aspects are important to, e.g., the founder of a business, the shareholders, management board and supervisory board of an established stock corporation or to a potential buyer of an undertaking alike. Page 2 Prepare the formation of a "GmbH"