Report

Legal structure of hostel (in Colombia)

Start a Hostel

LKC started this discussion 7 years 6 months ago

Hi All,

I'm new to this website, and I'm very excited in joining the community. This is my first post on this forum.

My question relates to the legal stucture of hostel, both in general and also country specific if anyone has experience in this matter.

1. I am a US-based person who is looking to start up a hostel in Colombia. Given the business of hostels, I wanted to see if anyone could share insight into whether hostels are generally set up as a sole proprietor, partnership, or some sort of limited liability vehicle (e.g. LLC or S-Corp in the US). If the answer is "it depends" then I would like to follow up on to ask what the "best practice" structure is to set up the hostel and what is actually done in pracfticality. The last thing I want is to be personally liable as a result of the hostel.

2. Is it necessary (or is there an advantage) to incorporate to a business within Colombia in the contextd of a hostel or would you be able to incorporate outside and do business in Colombia? I understand paper-work and bueracracy might be a challenge to get started, hence my question is directed to see if anyone has any experience to say that it might be more advantages (speed and cost) to incorporate in the United States, and then be an investor into Colombia (not sure how legally this would work, so if this is a dumb question, please excuse me).

Thanks in advance!

LKC

Comments

Report

Rucksack Brian

7 years

Sadly, I have never opened a hostel in Colombia, so I can’t offer specific relevant advice.

That said, you will probably be best to establish a corporation similar to an LLC that would leave the business liable, and not you personally. As I understand it, sole proprietorships tend to leave you exposed to too much risk.

I recently met a Colombian hostel owner traveling through Europe. His partners were running the business while he traveled, and they were not from Colombia. I got the impression that they needed a local to be involved in order to start up there, but I can’t confirm that.

The idea of opening a US corporation and then moving down to conduct business in Colombia is interesting. If I were to take a guess (read: a blind stab in the dark with no solid basis to back up my gut feeling) I would imagine that it would be easier to open a Colombian company that to battle the bureaucratic red tape of operating a foreign entitty in a local market. Do you know anyone in Colombia who would be willing to join your team on paper or in practice who could help you navigate the local business processes?

Report

ldivanga

7 years

to answer your question about legal structure, I-d like to choose the best argument: what-s the best to pay the less taxes?

The answer is solo owner, you pay much less than society any kind

I am French business administrator running a Hostel Bar and Restaurant on the Caribbean coast and you my add below in case:

Divanga B&B for sale: Great deal!
For sale beautiful property with successful business Hostal-Bar-Restaurant in Taganga Bay, near Santa Marta, on the Colombian Caribbean coast. The property has an area of 600 m2 approx. with all amenities: 13 rooms with 40 guests capacity, all with private bathroom, lockers, fantastic common areas, swimming pool, large kiosk and terrace for restaurant-bar area, large kitchen, work area, green areas, luxury finishes and two terraces with a magnificent sea view.

For more information, please contact the following cell numbers: 3166515203, telephone: 4215400 or email: [email protected] and make your appointment.

See on the internet:
• www.divanga.com
• https://www.spanish.hostelworld.com/hosteldetails.php/Divanga-Bed-and-Br...
• https://www.youtube.com/watch?v=Duv7RvI-UCU&feature=youtu.be

• https://www.tripadvisor.co/Hotel_Review-g1149024-d1203005-Reviews-Divang...

Cheers,

Lucie

Report

ldivanga

7 years

I would colaborate and give all the key for success!

you don't need any local.

Lucie

Search form

Report 'Legal structure of hostel (in Colombia)'?

Report 'Sadly, I have never opened a'?

Report 'Hi'?

Report 'I would colaborate and give'?

Join the world's largest community of hostel professionals.

Check Your Email