Many people are hesitating that they should "Is it good to register a company?" Today through FDI Accounting, we have gathered information that can happen for everyone to make more informed decisions.
7 things to know before registering a company !
1. Build credibility for the business
The juristic person business will have more credibility than a normal person business. Because can know who your partner is. what business How much funds do you have? Have an income and expenses account various financial statements which can be verified to make it more reliable
2. Pay tax at a lower rate than ordinary people
Because individuals will calculate tax on net income. According to the maximum tax rate of 35%, but if the company is registered, the tax rate will be calculated from the maximum net profit of 20%, depending on the net income of each company.
3. In the year that the business loses, it does not have to pay tax.
If a juristic company incurs losses The company does not have to pay tax for that year. And can still be tax deductible in the future for another 5 years, which is different from ordinary people Even if the business is at a loss But there is income coming in In terms of tax, expenses must still be deducted according to the flat rate. Therefore, you must pay tax even if there is a loss.
4. Easier to grow your business
Able to expand business quickly because there is an opportunity to access funding sources or easy business loans and low interest Because financial institutions have confidence in lending to juristic persons. more than an ordinary person Most of them will not meet the criteria for giving commercial loans. or if lending, get a lesser amount
5. Money management is more systematic.
Legally when in the form of a legal entity It is very important to have separate personal and business accounts. This prevents confusion between the two funds. Unlike a normal person without good money management. This can lead to a very high degree of error.
6. Must be ready to prepare documents
In doing business in the form of a company, the preparation of evidence documents, whether income documents, expense documents According to the regulations of the relevant government agencies. which perhaps doing business as an individual may save more tax But if there are ready and correct documents Being a corporation sometimes allows for more tax deductions than the lump sum rate.
7. Taxes to be remitted to government agencies
Taxes for registered business owners Both juristic partnerships, companies and public limited companies The tax rate ranges from 5% - 20% depending on the size and income of the business and every time you pay. Some expenses paid, such as service fees, are mandated by law for legal entities to withhold taxes. Issue a withholding tax certificate and remit the withheld tax to the Revenue Department. The main relevant tax forms are:
P.N.D. 3 is a tax form that remits the withholding tax that the company deducts from individuals.
P.N.D. 53 is a tax form that remits the withholding tax that the company deducts from the company.
P.N.D. 50 is tax filing at the end of the year.
P.N.D. 51 is mid-year tax filing.
In this regard, it can be seen that registering a company has both advantages and disadvantages. If anyone who has finished reading this article decides to register a company, FDI Accounting makes it easy to register a company. and also offers tax consulting services and accounting both monthly and yearly from experts here
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