Many people face difficulties when starting their own businesses. They don't know whether to register as self-employed or as a company. This article will solve this problem for you at one time and tell you when to register as an individual and when to register as a company. If you have such people around you, you can share with them.
First of all, whether you are a registered self-employed person or a registered company, you need a registered address. However, many residential addresses can no longer be registered as self-employed persons. They must be common addresses. Therefore, before registration, you need to consult your local market supervision office and provide the property right certificate of the registered address (either a photo or a copy of the house).
If you are sure that you can register as a self-employed person, under what circumstances is it appropriate to register as a self-employed person? The biggest benefit of the self-employed is tax revenue. The tax revenue of self-employed households is very flexible and can be collected in many ways, such as medical income rate collection, nuclear collection, verification collection, year-end bonus collection, etc.
If you only want to sell goods on the platform of a treasure, a lot or a group, and do not have much business, then you can register as a self-employed person. After all, the scale is small. One tax return per quarter is enough, and there is no corporate income tax, so it is unnecessary to take too much trouble to calculate the base. In addition, it is very convenient for self-employed households to get your personal tax when withdrawing cash.
Under what circumstances should you register a company?
First, if you need a partner, you need to register a company. Because only the company can carry out the announced distribution and profit distribution.
Secondly, if you want to open a chain store or become a formal large enterprise, you also need to register a company, because self-employed people can't carry such a large scale.
Finally, if the project you operate has certain risks, you should also register a company, because the company bears limited liability, while the self-employed person bears unlimited liability.
Therefore, if your business is large or risky, then it is more appropriate to register a company.
In general, both registered self-employed and registered companies have their own advantages and disadvantages, which need to be weighed and selected according to their own actual conditions. I hope this article can help you to develop your business better.
