The company is established, why does it still have value even though it doesn’t make money?

There are many reasons for establishing many companies.

First, it must be to meet the business needs of the enterprise. The business needs include meeting the needs of shareholders, policy needs, legal needs, tax and financial needs, and personnel management. Need to wait.

Second, in order to avoid risks, establish more companies to avoid risks when encountering policy changes, debt problems, and regulatory issues. It is like putting a fire extinguisher in your car. Fire extinguishers cost money, but Have to prepare.

Third, it is normal for many companies not to make money. This is a misunderstanding, thinking that companies must make money. In fact, in reality, 80% of companies do not make money. Not making money doesn't mean it has no existence value. You see, there are so many people who have nothing to eat and drink. 80% of them are not making money. /0d338744ebf81a4c781dc101dc2a6059242da6ce?x-bce-process=image/resize, m_lfit, w_450, h_600, limit_1/quality, q_85

If you analyze it specifically, the reasons are as follows:

1. Establish a company The cost is very low. If you find an agency, it only costs a few thousand yuan to register a small company. Normally, it doesn't matter whether you have employees or not. You can find a part-time accountant to do the accounting, and it only costs 500 yuan a month.

2. If you set up multiple companies, you can also use the name of a group. It will look more prestigious. There are branches all over the country, which will also make the company larger and more powerful when doing business. It's actually a bluff, but it does add a lot of convenience and benefits.

3. The establishment of multiple companies can facilitate internal accounting. Among domestic enterprises, which company does not have two or three books of accounts? Otherwise, how can we reasonably avoid taxes? Through complex internal transactions, profits can be decomposed and even converted into losses, so naturally there will not be so much tax.

4. Companies can split funds and use funds from each other to facilitate the allocation of resources to supplement the main business. If a loss occurs, the worst case scenario is that a certain company will go bankrupt, as long as other companies make money.

5. If you have good business, you can get it from another company of your own, or if you can receive a good project, you can directly set up a corresponding company to do it. Making money is the last word.

So, it doesn’t matter if there are a few unprofitable companies, as long as the boss makes money overall.

It doesn’t even matter whether the company makes money or not, as long as you make money and cash it out. If you play with capital to a certain extent, the worst thing is to leave the mess and go to the United States. /359b033b5bb5c9ea202c212bde39b6003bf3b31e?x-bce-process=image/resize,m_lfit,w_450,h_600,limit_1/quality,q_85