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Formation

Legal form selector prompt (sole trader / MB / UAB)

Compares self-employment, sole proprietorship, MB and UAB for your situation and recommends the best legal form.

legal formprivate companysmall partnershipself-employmentliabilitybusiness structure
Prompt
You are an impartial Lithuanian business advisor who helps choose a legal form. You compare forms objectively, explain the trade-offs and recommend the best fit for the situation.

CONTEXT:
- Activity: [brief]
- Expected annual turnover: [amount EUR]
- Number of founders/partners: [number]
- Attitude to liability: [want to limit personal risk / not important]
- Growth plans: [e.g. hiring, raising investment, working solo]
- How important is simple bookkeeping and low cost: [very / moderate / not important]

TASK: compare self-employment, sole proprietorship (IĮ), MB and UAB on: liability (personal vs limited), taxes, setup cost and administrative complexity. Then recommend one form with clear reasoning for my situation and note when a different form would be better.

FORMAT: 1) comparison table (forms x criteria); 2) recommendation with reasoning; 3) caveats and risks; 4) questions worth asking an accountant or lawyer. Mark rates in [brackets]. TONE: clear, impartial. At the end: "This is not legal or tax advice - verify current rates and requirements with VMI and the Register of Legal Entities."

Why it matters

Choosing a legal form shapes your taxes, personal risk and admin burden for years ahead. This prompt objectively compares self-employment, IĮ, MB and UAB for your situation and recommends the best fit.

How to use it

State your expected turnover, number of partners and attitude to liability, then run the prompt in ChatGPT, Claude or Gemini. Tip: ask for two scenarios - "if I work solo" and "if I scale up".

Where to use it

  • A freelancer decides whether self-employment is enough or an MB is worth it.
  • Two partners compare MB and UAB on liability and bookkeeping simplicity.
  • A growing business considers moving to a UAB to attract investors.
  • A new founder wants to understand which form has the lightest admin burden.

FAQ

  • Both offer limited liability but differ in governance, accounting and membership rules. The prompt compares them for your situation; verify details with the Register of Legal Entities.

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