At the beginning of starting a business, most people will face a question, choose to register a company or register as a self-employed person? Some people heard that registering a self-employed person does not need to keep accounts and is tax-free, so they hurriedly went to register a self-employed person. But I would say that there is no such thing as an unregulated form of organization, and it is not that good at all! If you believe that self-employed people do not keep accounts and are tax-exempt, you will be fooled there!
1. Do self-employed people need to keep accounts?
In accordance with the provisions of the tax law, taxpayers engaged in production and business operations shall set up account books in accordance with the relevant provisions of the state within 15 days from the date of obtaining the business license or incurring tax liability. In other words, self-employed people also need to establish account books and bookkeeping, which is the same as that of a company. The difference is that if it really does not meet the standard of account establishment, with the approval of the tax authorities, a paste book of income and expenditure vouchers, a register of purchase and sales or a practical tax control device shall be established.
What if someone says I can't keep accounts? That's also very simple, if you really can't meet the approved standards, you can carry out the verification and collection. In addition, self-employed individuals can also hire an accounting agency to build accounts and handle accounting matters on their behalf.
2. Are self-employed individuals tax-exempt?
Self-employed individuals are not exempt from tax, but there are currently some preferential tax policies for self-employed individuals, such as VAT exemption for monthly sales of less than 100,000 yuan. However, this policy is not only for self-employed people, all small-scale taxpayers who meet the requirements can enjoy this policy, whether they are individuals or companies.
In other words, even if you are a company, you can be tax-exempt to a certain extent, but this is only related to the policy, and has nothing to do with the organization of the self-employed or the company.
In addition, companies have to pay corporate income tax, while self-employed people need to pay personal income tax, which is basically the same.
3. Are self-employed individuals exempt from annual inspection?
The Regulations on Individually-Owned Businesses stipulate that self-employed persons shall submit an annual report to the registration authority from January 1 to June 30 of each year. The registration organs are to enter individual industrial and commercial households that fail to perform their annual reporting obligations in accordance with provisions into the directory of abnormal business operations, and announce them to the public on the enterprise credit information publicity system.
For all kinds of inspections or annual inspections of self-employed people, there will be no less, the inspection will be checked, and it may only be slightly less checked in some aspects of actual life. But that's just a sensory difference, it's all pretty much the same.
Whether to choose a company or an individual is only related to the type of business, customer group and start-up capital. If it is a small business, then it must be registered as a self-employed person; But if the customer base is all companies and need to issue invoices, then it is better to register a company.
Start-up companies need to weigh the pros and cons of all parties and choose the registration license that is most beneficial to them. You don't have to be obsessed with self-employed or companies, and don't believe all kinds of non-** information. There will inevitably be relevant documents for various policies, and it is enough to follow the documents.