What's so good about being self-employed? First of all, self-employed individuals are not legal persons, do not pay corporate income tax, and directly pay 5% to 35% of the individual income tax on business income according to the tax law profits earned.
Do I have to pay 20% tax when I pay dividends? No, there is only one income tax, 5% to 35% penetrates to the individual, and you can take it home after paying the money. Now it is halved below 2 million, which is roughly equivalent to saying that if your annual profit does not exceed 2 million, the highest tax rate is only about 175%, as long as you pay this tax, you can take it home.
If it is too high, you can also find a park to do the verification and collection, after the verification, your actual tax rate may only be 1% to 3%, and the verification can be used in conjunction with the halving levy concession. Someone said that it was not allowed to be approved? No, it is basically impossible to verify a single partnership, but the verification of self-employed individuals is still very common, and there are quota approvals and rate approvals.
If a few percent is too high, there are also preferential policies for people with disabilities. Everyone knows that the so-called legal representative of the self-employed person is called the operator on the business license, that is, the person who bears the individual income tax on the self-employed business income we mentioned earlier. If the disabled person is the operator, then the individual income tax on business income will be exempted to a large extent. The policies vary from place to place, with some reducing taxes by 50%, some reducing taxes by 80%, and some reducing taxes by 100%.
As you know, self-employed individuals can not open a corporate account, and after paying the taxes, they will go directly to the private account, and there are not so many problems of public to private and private to public. You can also open it, you can also turn it on, you can not open it. Some people want to say at this time, but the self-employed have unlimited responsibility. Of course, because self-employed people are not legal persons, they cannot act independently. It is precisely because of this that self-employed individuals do not pay corporate income tax, but the operator directly pays individual income tax.
But you should pay attention to the fact that those generally run by self-employed people are either small street shops, large stores, tofu brains, chestnut cakes, baking, or asset-light businesses. For example, to build a small **, to be an anchor studio, to be a design studio, to be a photography studio, etc., are all debt-free and asset-light operations.
For enterprises with a slightly larger scale, it is impossible to take self-employed individuals as the main body of operation. Don't talk about this issue of joint and several liability, just say that you sign a contract, say bidding, and look at it as a self-employed person, do people want you? For many enterprises, self-employed people are not the main body of business, but a tool.
Many people look down on self-employed people and feel that they have a low market position. But if you study a little bit, you'll know that there are still a lot of ways to do it.