Fintegrity recently received a private message from backstage fans asking the question: Is it better to register a company or to be self-employed?
Registered self-employed households do not require seal engraving, do not require opening of corporate accounts... I heard that they can still not keep accounts? Duty free? Avoid the examination of industry and Commerce and tax authorities? Regardless of all the rumors, Fintegrity is here to uncover the truth~
First we'll refute several prevalent rumors about being self-employed.
1."no accounting"? !
Do self-employed people need to declare accounts? According to the rumor: need not! Here, we are obliged to tell you: Be sure to keep an account!!! Otherwise the consequence is very serious! The Interim Measures for the administration of the establishment of accounts by individual businesses stipulates that individual businesses must also establish account books, which are the same as those established by companies. If the self-employed account can't meet the standard of establishing an account, they must also obtain the approval of the tax authorities to establish a Book of pasting revenue and expenditure vouchers and a register of purchase and sales. Of course, the "measure" also said: the self-employed can hire an accounting agency to set up accounts and handle accounting matters.
Attention!! The so-called tax exemption only refers to the exemption of value-added tax for individual businesses whose monthly income is less than 30000 yuan.
But: this quarter sales within 90000 free VAT preferential policy is not only for self-employed! It's for all small-scale taxpayers who meet the requirements, whether you're self-employed or a company.
In other words, if you are a self-employed person and have applied for the general taxpayer, this preferential policy has nothing to do with you.
Besides, in addition to the value-added tax, the company has to pay enterprise income tax, while the self-employed have to pay individual income tax, which is called "personal production and operation income", with the same nature.
So ~ there is no special tax exemption for self-employed households!
3."Exempt from inspection"? !
First of all, the self-employed must also make an annual report in June every year! No annual report, they still check you!
Article 14-15 of the regulations on individual businesses: individual businesses shall submit annual reports to the registration authority from January 1 to June 30 every year. The registration authority shall list the individual industrial and commercial households that fail to fulfill the obligation of annual report in accordance with the provisions into the list of business exceptions, and publicize them to the society on the enterprise credit information publicity system.
In addition, some self-employed people who open small restaurants come to check food safety every day. Some people who open accommodation or work in studios will definitely check your fire protection problems.
4. "Less administrative approval process"? !
First of all, like general companies, self-employed businesses that involve pre-approval or post approval of their business scope are subject to approval.
As for those that do not need approval, the online business registration process is exactly the same. There is no problem whose process is less.
In addition, any business changes of the self-employed must be filed with the administration of industry and commerce just like ordinary companies!
Article 36 of the measures for the administration of the registration of individual businesses: if the registered items of individual businesses are changed and the registration of changes is not handled, the registration authority shall order them to make corrections and impose a fine of less than 1500 yuan; if the circumstances are serious, the business license shall be revoked.
So, according to the above statements, is it better to register a company?
Emmm…… we can only say that individuals and companies have their own advantages and disadvantages, and will play different roles in different periods.
Next, we will summarize the differences between the company and the self-employed.
1. The registered capital
When individual business registers, did not register capital minimum requirement. Of course, the registered company, no longer. We can say that both sides are equal at this point!
2. The registration process
Self-employed does not have the problem such as bank basic account. The company should be in accordance with the industrial and commercial nuclear name - get the business license - seal - bank account - tax reporting - buy the tax control machine, get the tax control plate this process.
3. Preferential policies
Self-employed can enjoy all kinds of supporting the incentive policy is less, because the meaning of SOHO is mainly is to meet a family's food and clothing, as to expand the team, to grow, and become the industry benchmark, this is not to soho's requirements, each basic industries of national nature did not care to individuals of all kinds of support, incentive policies. The company can enjoy all kinds of national and regional preferential policies. Individual business general check and ratify individual income tax, value added tax should issue an invoice to be about to pay only, this preferential policy does not exist commonly, of course 300 thousand inside still can be duty-free.
Generally, the company determines the types and rates of taxes payable according to the economic nature and business operations of the enterprise. Declare duty to duty on time to duty every month (it is individual duty every month must declare commonly now, even if one pays salary does not have), also want to undertake 0 declare, can be fined otherwise. Self-employed is tax authority is in commonly according to its position, size, employee number, sale merchandise to wait to estimate your sale amount, it is regular norm commonly. Of course the scale is big, also need to declare value added tax by the month, for example the self-employed of average taxpayer.In general, corporate taxes are much more troublesome than the self-employed!
5. The name
In the name of individual business cannot have "company" two words.The partnership must be added to the partnership, the sole proprietorship enterprise can normally use the company. The editor sometimes feel that the name of the self-employed is relatively low, so, want to high-end, atmosphere, on the level, or registered company!
6. About investors and partners
The management of self-employed is individual or family is unit, you imagine average company to look for a person to invest like may be more difficult, because individual household does not have the say of share, not be you want somebody else "friendship sponsors" you !
7. To assign or transfer
If you want to change the operator of the self-employed, can not be like the company, find a suitable person to transfer out. Because the operator of individual business cannot change commonly, want to change also can be the form that compose only is family to manage, the change is inside the limits of the family member that participates in management that has put on record. The company can be transferred, divided into: general transfer and special transfer, internal transfer and external transfer, full transfer and partial transfer, agreed transfer and legal transfer, other categories.
8. The cancellation of the process
Self-employed write-off is relatively simple, the company write-off is very troublesome, oneself personally ran through the write-off experience of the accountant should understand this kind of hardships ~
9. There is a difference between opening a company and a shop
Want to open a branch? You think it's as easy as a company setting up a branch! A self-employed person can only have one place to operate. Then register a self-employed good? Sorry, one can only register as a self-employed person. What about the company? 10, 100 free you!
10. Management risk
The biggest difference between the self-employed and limited liability companies is that the self-employed assume unlimited liability. Relatively speaking, the operation risk is relatively high. For example, if you open a small restaurant and someone dies of food poisoning, you have to pay for it with all your wealth! What about the company? It's limited to the amount of capital contribution, not to be ruined. Based on the above Fintegrity's answers, before choosing to register a company or become self-employed, we hopes that all enterprise owners should consider carefully, not only in the immediate future, but also in the long-term goal.
If it's just a small restaurant or a small supermarket, it's best to register as self-employed. To set up an investment enterprise, a partnership is more suitable.
But to consider later, prepare financing, etc., registering a company is obviously better.
Which is a better choice? It solely depends on your situation!