There are great differences between the limited liability company and the individual business in the aspects of registered capital, tax and legal liability.
Next, through the comparison between the two identities, I would like to introduce to you the differences between them before and why you choose to register as a company.
The difference between limited liability company and individual business
Individual businesses do not enjoy preferential policies, no investment risk and do not need accounting. Limited companies need to do accounts and tax returns every month, so they can enjoy preferential tax policies.
VAT invoice application
Individual businesses are not allowed to apply for a 17% increase in the tax rate. They can only apply to small-scale taxpayers (3%). Limited companies can apply for 17% of the general taxpayer VAT invoice.
If the individual business loses money in business, you have to be responsible for all the debts. If a limited liability company loses money in business, it can apply to the court for bankruptcy protection. For example, when you register a company, the registered capital is 500000 yuan, and you owe others 2 million yuan, you only need to pay back 500000 yuan. Moreover, it is protected by law, and other people can't take you.
The tax authorities usually estimate your sales according to their location, size, number of employees, sales of goods, etc., and then give tax. No matter how much income you have in the current month, you should pay tax according to the fixed tax amount.
The limited liability company is usually required that the enterprise must have sound accounting and accounting, and pay taxes according to the income declared by the enterprise itself. If there is income, it will not be paid.
Handling of articles of Association
The articles of association are not required for the registration of individual businesses, while the articles of association are required for the registration of limited liability companies.
With Linyi company registration above small summary, hope to help our customers, if there is anything you do not understand or seek help, please click our website: http://www.jiuxingkuaiji.com Or call consultation, we will try our best to solve it for you