1. Registered capital

1. When self-employed individuals register with the industry and commerce, there is no requirement for registered capital

2. When a limited company registers, Registered capital is required

2. Registration

1. Individual industrial and commercial households only have a business license, which is simple and fast to apply for.

2. In addition to a business license, a limited company also needs company articles of association. This document varies according to various countries and regions. For example, the documents after registration in Hong Kong, Singapore, island countries, and mainland China are all different.

3. Different tax preferences

1. Self-employed industrial and commercial households do not enjoy preferential policies when paying fees, have no investment risks and do not need accounting. A limited company needs to prepare accounts and file taxes every month, and can enjoy preferential tax policies.

2. Individual industrial and commercial households cannot apply for an increase in tax rate of 16, but can only apply for small-scale taxpayers (3). A limited company can apply for a 16-year-old general taxpayer VAT invoice.

4. Different tax payment and tax calculation methods

1. Individual industrial and commercial households:

Generally, they pay a fixed amount of tax, and the fixed tax does not matter whether they have income or not. All need to be paid. If you do not choose to pay a fixed amount of tax, you can pay tax according to the actual account. The account payment is divided into three situations

If the amount is less than 90,000 yuan: no tax is required (yes Refers to one quarter)

Amount of 9-5 million: pay as a small-scale taxpayer 3

More than 5 million: pay as a general taxpayer 17, pay more tax, generally not suggestion.

2. Limited liability companies pay taxes:

The corporate income tax rate is 25. ?

Qualified small and low-profit enterprises are levied a corporate income tax at a reduced rate of 20%. ?

High-tech enterprises that need to be supported by the state are levied a corporate income tax at a reduced rate of 15%.

5. Account header

There is no legal representative for self-employed individuals. It belongs to personal business, and opening an account is a personal account

The bank account opened by a limited company belongs to the company's public account, and the title belongs to the company name. There is a big difference between an individual business owner and a limited liability company!

1. The definitions of the two are different

1. Individual industrial and commercial households refer to citizens who engage in industrial and commercial operations within the scope permitted by the law and are approved and registered in accordance with the law. , such as: a small shop selling braised vegetables, a small restaurant opened by a couple at the entrance of a community, etc. Under normal circumstances, the business scale of individual industrial and commercial households is small;

2. A limited liability company refers to a company based on the " According to the Regulations of the People's Republic of China on the Registration and Management of Companies, registration shall be established by capital contributions from less than fifty shareholders. Each shareholder shall bear limited liability for the company in accordance with the amount of capital contribution subscribed, and the company shall use all its assets to Debt-responsible economic organization.

For example: XXX City Limited Liability Company, etc.;

2. Different names

1. The names of individual industrial and commercial households are mostly XXX store, XXX sales department, etc.;

2. The name of a limited liability company is mostly XXX Limited Liability Company;

3. Different business locations

1. Individual industrial and commercial households are not required to have a fixed business location, such as: Small vendors walking in the streets, etc.;

2. When registering a limited liability company, you must fill in a fixed business location, which can be owned or rented;

4. Different registered capital

1. Individual industrial and commercial households do not need to specify the registered capital. For example, a small vendor selling braised vegetables on the street does not need to ask how much registered capital it has;

2. A limited liability company must have registered capital. It used to be a paid-in system, but now it is a subscription system, which means that the shareholders unanimously agree to pay in full their investment before XX, month, XX, year XX;

5. Different degrees of liability for debts

1. The debts of individual industrial and commercial households shall be borne by personal property if operated by an individual; if operated by a family, the debts shall be borne by family property. Because individual industrial and commercial households do not have legal personality, they bear unlimited liability for debts. For example, in the braised vegetable restaurant mentioned above, if people died due to faulty food, the owner of the braised vegetable restaurant must bear unlimited liability. If it is run by a family, the family must bear unlimited liability;

2. Limited liability The company has full legal person status, so the shareholders of the company have limited liability for the company's debts up to the amount of their capital contribution. For example, if the braised vegetable restaurant mentioned above is a limited company, the capital contribution subscribed by the company's shareholders is 500,000, and they will also die. If a person is killed, the shareholder will only be liable for 500,000 yuan, which will not affect the shareholder's family property;

6. Differences in taxation

1. Individual industrial and commercial households regard the owner as the owner Individual income tax payers. Therefore, individual industrial and commercial households do not pay corporate income tax, but only pay personal income tax. Article 3 of the "Individual Income Tax Law of the People's Republic of China" stipulates that business income is subject to an excess progressive tax rate of 5% to 35%; Article 6 stipulates that business income is taxed in each tax year. The balance of the total income after deducting costs, expenses and losses is the taxable income.

Article 12 of the "Individual Income Tax Law of the People's Republic of China" stipulates that when a taxpayer obtains business income, the individual income tax is calculated on an annual basis, and the taxpayer shall file a tax return within 15 days after the end of each month or quarter. The tax authorities shall submit tax returns and prepay taxes; the final settlement shall be made before March 31 of the following year when the income is obtained;

2. The limited liability company shall pay corporate income tax. The income tax rate is 25%. Corporate income tax is calculated based on the tax year. The tax year begins on January 1 and ends on December 31 of the Gregorian calendar.

In addition, when the company distributes profits and dividends, if the investor is a natural person and the shareholder receives dividends, according to the "Individual Income Tax Law of the People's Republic of China", the shareholder should also pay dividends Personal income tax applies a proportional tax rate of 20.

If the investor is a legal person, the dividends and bonuses received can be treated as tax-free income if they are dividends, bonuses and other equity investment income between qualified resident enterprises;

7. Different procedures

1. Due to the small scale of individual industrial and commercial households, individual industrial and commercial households that do not meet the standards for setting up account books stipulated in the "Interim Measures for the Management of Account Establishment of Individual Industrial and Commercial Households" are subject to regular fixed taxation, so they do not need to set up account books, etc., of course. If the individual industrial and commercial household is large in scale, it can hire a professional institution approved to engage in accounting agency bookkeeping business or a qualified accounting personnel to create and handle accounts on its behalf;

2. Compared with limited liability companies, It is relatively formal, and must abide by the relevant provisions of the Company Law, and financial accounting reports should be prepared at the end of each fiscal year; In summary, there is a big difference between an individual business owner and a limited liability company, so please choose carefully!

1. Different business locations

A limited company must have its own fixed business location and employees, while there are no restrictions for individual industrial and commercial households, which are engaged in passenger and cargo transportation, trafficking, and setting up stalls. , Individual industrial and commercial households with mobile services do not need a fixed business location.

2. Different investment entities

The investment entity of a limited company is a legal person, and the license is an "Enterprise Legal Person Business License". Corporate legal persons can independently enjoy legal rights and assume legal obligations in the name of the enterprise itself. Legal rights and obligations belong directly to the enterprise rather than to corporate investors.

The investment subject of an individual industrial and commercial household can only be a natural person. The license is the "Individual Industrial and Commercial Household Business License". He participates in economic activities as a natural person. As the subject of civil legal relations, he does not have the attributes of an enterprise legal person. Bear unlimited liability, so the "Individual Industrial and Commercial Household Business License" has no registered capital.

3. The property responsibilities they bear are different

A self-employed person bears unlimited liability for property, while a limited company bears limited liability for property. As far as industrial and commercial management fees are concerned, self-employed is better, because the self-employed business The government has announced that it will stop collecting management fees, but limited companies still have to pay them, but the industrial and commercial management fees are only a few hundred yuan a year, not much.

The legal subject of a limited company is a company, while the legal subject of an individual business owner is an individual. A limited company has limited liability for debts, and debts exceeding the registered capital can apply for bankruptcy; individual industrial and commercial households have unlimited liability for debts, and the debts must be paid off.

4. The taxes paid and financial accounting requirements are different between the two.

A limited company must have a sound financial management system, while individual industrial and commercial households do not have financial system requirements. The difference in taxation is that self-employed businesses collect business tax (based on 4 to 6 percent of monthly turnover). If the monthly turnover is less than 5,000 yuan, no tax is collected. Profits are levied according to personal income tax. The business tax is the same for limited companies, but the income tax is different. Corporate income tax is levied. The tax rate is relatively high (24 to 33).

5. The liquidation procedures of the two are different.

When a limited company is dissolved, the investors shall liquidate themselves or the creditors may apply to the people's court to appoint a liquidator for liquidation. There are no liquidation procedures for individual industrial and commercial households when they go out of business. They only need to go through the closing procedures with the original registration authority and surrender their business licenses.

1. The names are different.

Individual industrial and commercial households can be named so-and-so store, so-and-so business department, so-and-so studio, etc., but not so-and-so company; the limited liability company is different, it can be called so-and-so company, so-and-so company, so-and-so company, etc. Ltd. or a certain limited liability company.

2. The legal status and the risks borne by the investors are different.

Individual industrial and commercial households do not have independent legal personality, do not have the capacity for civil rights and civil conduct, and cannot bear civil liabilities independently. Therefore, individual operators bear joint and several liability for their debts

The company has independent legal personality and can independently bear civil liabilities. As an investor, he shall be liable for the company's debts to the extent of his subscribed capital contribution.

Example: An individual industrial and commercial household owes a debt of 100,000 yuan to external parties during its operation. The individual industrial and commercial household must bear joint and several liability for the debt of 100,000 yuan until it is paid off. And if it is a company with a registered capital of only 30,000 yuan, the upper limit of the investor's liability for the company's debts is 30,000 yuan. The investor does not need to bear liability for the excess of 70,000 yuan. If the company is unable to repay, it can choose to go bankrupt.

3. Different tax types, tax declaration methods and accounting requirements are involved.

Regardless of individual industrial and commercial households or limited companies, under normal circumstances, they are required to pay value-added tax, urban maintenance and construction tax, education surcharge and local education surcharge, and they can enjoy the monthly income of less than 100,000 yuan. , or the quarterly operating income is less than 300,000 yuan, the preferential policy of exempting from paying value-added tax.

Individual industrial and commercial households need to pay personal income tax on their business income; companies need to pay corporate income tax on their business income. And if the company makes a profit and distributes the profits to individual investors, it will need to pay a personal income tax of 20 based on the dividends and interest income. This is the tax difference between the two.

If an individual industrial and commercial household does not meet the conditions for establishing accounts, taxes can be assessed and collected according to the policy. The boss only needs to know how much money he makes. The company needs to establish accounts and conduct accounting, and taxes are levied through audit. Under normal circumstances, the approved collection policy is not allowed.

For example: to open a small shop, shop early, or open a barber shop, it is more appropriate to register as an individual industrial and commercial household; Oh, if you open a large supermarket, or develop a real estate project, it is more appropriate to register a limited liability company suitable.

Hello, let me answer your question.

Your question is: What is the difference between a sole proprietorship and a limited company?

First of all, we need to clarify the concepts of individual industrial and commercial households and limited companies.

1. Individual industrial and commercial households:

Article 2 of the "Measures for the Registration and Management of Individual Industrial and Commercial Households" "Citizens with business capabilities shall register with the market supervision and management department and obtain a business license for individual industrial and commercial households" , carry out business activities in accordance with the law.” The registration matters include: (1) Name and address of the operator; (2) Form of composition; (3) Business scope; (4) Business location;

2. Limited company:

The full name of a limited liability company is a limited liability company. It is established in accordance with the conditions stipulated in the "Company Law" and relevant laws. The shareholders bear responsibility for the company to the extent of their capital contribution and enjoy the income in proportion to their shares. The company uses all its assets to pay its debts. The corporate legal person who bears responsibility.

Secondly, the difference between the two.

1. Different organizational forms. A limited company is a corporate legal person, not a natural person. Individual industrial and commercial households are not corporate legal persons, but natural persons.

2. Taking responsibility is different. A limited liability company only bears limited liability for all its assets. Shareholders only bear limited liability for the company within the amount of their capital contribution. The law does not support debts exceeding the amount. Individual industrial and commercial households, on the other hand, have unlimited liability.

3. The establishment (establishment) conditions are different.

A limited company needs to be established in accordance with the conditions stipulated in the "Company Law" and relevant laws, and there are thresholds. There are many documents to be submitted to the company registration authority, such as company board resolutions, company articles of association, list of all shareholders and shareholder capital contribution ratios, etc. The conditions for establishing an individual industrial and commercial household are simple. As long as you are a Chinese citizen, have business capabilities, and bring your ID card, proof of business location, etc., you can go to the market supervision department to obtain an individual industrial and commercial household business license and carry out business activities.

4. Legal requirements are different. The company implements the general manager responsibility system. According to legal requirements, the company's shareholders' meeting, board of directors, and board of supervisors need to be established; it must have company seals, financial seals, invoice seals, contract seals, legal representative seals and other seals; it must handle basic bank accounts, bookkeeping and tax filing, social security payments, corporate annual reports, etc. The above requirements are not required for individual industrial and commercial households.

The above are personal opinions and are for reference only!

,

There is a big difference between a self-employed person and a limited company. It would be a long article to describe it in detail, so I will briefly summarize a few points for you here.

1 .First of all, the organizational forms are different. One is an individual industrial and commercial household, and the other is a limited company. The individual industrial and commercial household is small, while the limited company is relatively large, and there are restrictions on the number of funds and the number of people.

2. Tax differences. For self-employed individuals, the tax authorities generally estimate your sales based on the size of your location, number of employees, sales of goods, etc., and then set a tax, regardless of the amount of income in the month or whether there is any income. Taxes must be paid according to the fixed tax amount, and the relevant tax amount cannot be deducted. A limited company requires the company to have sound accounting and keep accounts. Taxes are also paid based on the income declared by the company itself, and the relevant tax amount can be deducted.

3. The establishment conditions are different. A limited liability company has registered capital requirements, and shareholders must pay the capital contribution amount stipulated in the company's articles of association; there is no registered capital limit for the establishment of an individual industrial and commercial household, and only the investor needs to declare capital contribution.

4. The legal forms are different. A limited liability company is a statutory civil subject with legal personality. It bears civil liability to the extent of the company's registered assets and has no relationship with the company's individual shareholders. Individual industrial and commercial households do not have legal person status, so the head of the household bears all civil liabilities.

5. The procedures for the two are different. The registration of a self-employed business license is relatively simple and the operation method is more flexible, while the registration of a company is more troublesome, requiring a lot of things to be provided and compliance with relevant company regulations. regulations etc.

If a contract is signed with an external party, an individual business owner has no rights, but a limited company does. Furthermore, individual industrial and commercial households cannot go public for financing, but companies can. There are many different details, so I won’t describe them one by one here. I hope the answer can help you.

Everyone is welcome to provide additional advice.

Generally, when registering a business, there are several situations that are more common, such as sole proprietorships, sole proprietorships, limited liability companies, etc.

There are certain differences between these forms. What is particularly important is the difference in responsibilities and taxes borne by investors. These two issues will have a very significant impact on subsequent operations. Therefore, Be sure to think clearly when registering. Additionally, there are other differences to consider. Let’s talk about them separately below.

1. The responsibilities are different.

Investors of individual industrial and commercial households and sole proprietorships bear unlimited liability for debts, while shareholders of a limited company bear limited liability limited to the amount of their capital contribution. Of course, there are exceptions. If the company's property and the shareholder's personal property are confused, the shareholder will be jointly and severally liable for the company's debts.

2. Differences in taxes.

Value-added tax is divided according to sales, while income tax is related to the organizational form of the enterprise. The main points to note are the following:

(1) Individual industrial and commercial households and sole proprietorships pay personal income tax, while limited liability companies pay corporate income tax. Therefore, this year’s especially large income tax discount for small and low-profit enterprises does not apply to individual industrial and commercial households and sole proprietorships.

(2) Whether there is income tax assessment and collection. At present, in addition to the assessment and collection of income tax for individual industrial and commercial households, the assessment and collection of income tax for other types of enterprises have been tightened.

3. Other differences.

(1) Investment subject: Individual industrial and commercial households can be funded by individuals or families, sole proprietorships are generally funded by natural persons, and investors of limited companies can be natural persons or legal persons.

(2) Legal form: Individual industrial and commercial households and sole proprietorships are not legal persons. The "General Principles of Civil Law", "Interim Regulations on the Administration of Urban and Rural Individual Industrial and Commercial Households" and the "Sole Proprietorship Law" respectively apply. A limited company is a legal person. , the Company Law shall apply.

(3) Financial accounting: The requirements for financial accounting are generally limited companies; sole proprietorships; individual industrial and commercial households. Financial reports of limited companies generally need to be audited.

(4) Future development: Individual industrial and commercial households have flexible operations, but they are not conducive to development and growth. If you need to set up a more complex organizational structure in the future, a limited company will be a better choice.

For several people to invest money to start a business together, it must be safer for everyone if shareholders who meet the legal requirements invest to form a company. If I am the only shareholder, can I not register a company? Definitely not, otherwise there would be no sole proprietorship. So if you encounter this situation, the biggest question is usually what is the difference between a sole proprietorship and a sole proprietorship. There are still some big differences such as whether it has legal person qualifications and whether investors bear limited liability or unlimited joint and several liability. Therefore, investors need to choose the most appropriate corporate form according to their actual situation. Registration

For self-employed individuals, there is no minimum requirement for registered capital when registering with the industry and commerce. A fixed location is not a necessary condition for establishing a self-employed business. A sole proprietorship must have a fixed production and business location and a legal business name.

When registering, the minimum registered capital of a limited company is 30,000. The minimum registered capital of a one-person limited company is RMB 100,000. What is implemented now is subscription, and there is no need to deposit the money in the bank. There is not much difference when registering, so a self-employed person who loses money must be responsible for all debts and must use all his property to repay them. A limited company can apply to the court for bankruptcy protection. For example, if the registered capital is 300,000 and it owes 1 million, then it only needs to pay back 300,000. This is legal.

Industrial and commercial registration is "one license, one code". Whether you are a self-employed person or a company, you must file and pay taxes normally. No one can escape, because industrial and commercial registration is bundled with tax registration. As long as you register , the tax department will be able to track you.

Company name

Individual industrial and commercial households can operate without a trade name, but sole proprietorships must choose an industry trade name when naming. In terms of name choice, both can be named a certain work "workshop" or "studio", or a certain center, a certain research institute, etc.

Establishment entity

Both the investors and operators of individual industrial and commercial households must be natural persons who invest in the establishment of individual industrial and commercial households, while the investors and operators of sole proprietorships can be different Investors in sole proprietorships can entrust or hire others to manage the affairs of the sole proprietorship, and ownership and management rights can be separated. Self-employed investors are not allowed to transfer. However, investors in sole proprietorships can transfer the property, and personal income tax will be levied on the income from property transfer. Tax declaration and preferential policies

What taxes do self-employed individuals and sole proprietorships pay? Both individual industrial and commercial households and sole proprietorships pay personal tax and value-added tax. They do not have legal person status and do not pay corporate income tax. A five-level progressive tax rate ranging from 5 to 35 applies to calculate and levy personal income tax.

The taxes that individual industrial and commercial households usually pay are: 1. Value-added tax: small-scale taxpayers whose monthly sales do not exceed 150,000 yuan (if one quarter is a tax period, the quarterly sales If the value does not exceed 450,000 yuan), it is exempt from value-added tax. Note: No need to pay taxes does not mean no need to declare. Companies have to pay corporate income tax, while self-employed individuals have to pay personal income tax, which is called personal production and business income. Self-employed individuals also need manpower to withhold and pay employees' personal income tax. Like companies, they also need to help employees withhold and pay personal income tax.

2. Taxes and surcharges: Urban maintenance and construction taxes, education surcharges and local education surcharges can enjoy the latest preferential policies with a tax reduction of up to 50%. The amount below 300,000 is exempt from value-added tax and surcharge (except for those where the tax bureau issues special value-added tax invoices on their behalf).

3. Personal income tax: Article 4 of the "Measures for the Calculation of Personal Income Tax for Individual Industrial and Commercial Households" (State Administration of Taxation Order No. 35) stipulates: "For individual industrial and commercial households, the owner shall be the individual income tax payer." Therefore, individual industrial and commercial households do not pay corporate income tax, only personal income tax.

Tax collection method

In terms of tax policy, both can be recognized as general taxpayers or small-scale taxpayers, and both can apply audit collection or verification collection methods. Those with an annual turnover of more than 5 million yuan must implement audit and collection. Different industries have different taxable income rates. Sole proprietorship industry, transportation industry, commerce 5, construction and real estate 7, catering service industry 7, entertainment industry 20 and other industries 10. The specific approved tax rate for individual industrial and commercial households is 0.6, the approved profit rate for sole proprietorships is 10 for services, and 5 for sales of goods.

In principle, both individual industrial and commercial households and companies need to set up accounts. Companies generally need to set up account books, keep accounts and file taxes within 15 days after receiving their business licenses in accordance with regulations. If a self-employed business owner has a relatively small business scale and cannot meet the standards for establishing accounts, he or she needs to obtain approval from the tax authorities to establish a revenue and expenditure voucher paste book and a purchase and sales register.

Other aspects

Annual industrial and commercial reports are required. Companies need to submit annual industrial and commercial reports before June 30 of each year. Individual industrial and commercial households must submit annual reports to the registration authority from January 1 to June 30 each year. Self-employed individuals hire employees, and like companies, they must pay social security for their employees. Both companies and individuals can apply for trademarks. When applying for a self-employed business, the name on the applicant's ID card and business license must be the same person.

What is the difference between an individual business owner and a company? Many people who have just started a business have this question: they don’t know where they want to start their business. So today I will explain it to you in detail from the following aspects. Different Basis

Individual industrial and commercial households are established in accordance with the provisions of the "Individual Industrial and Commercial Household Regulations". As long as they are individual citizens with business capabilities, they can be established in accordance with the law. A company is a business organization established in accordance with the Company Law for the purpose of profit. Different establishments

This is mainly reflected in the industrial and commercial registration. The process of company registration and the required information are relatively large compared to individual industrial and commercial households. Moreover, the registration of individual industrial and commercial households does not require registered capital. You can register as an operator with an address. But the company requires a minimum registered capital of 30,000. The risks are different

Since individual industrial and commercial households are run by the operator alone, they are responsible for their own profits and losses. This is what Du said is the unlimited liability system. The company has limited liability. What does that mean? For example, if the company is not operating well and owes 800,000 yuan, and the company has a registered capital of 200,000 yuan, the company does not need to repay 800,000 yuan after it declares bankruptcy, but only needs to repay 200,000 yuan. Different business methods

The business methods and directions of individual industrial and commercial households completely depend on the operator and are relatively flexible. A company needs a legal person or shareholder resolution before it can formulate its development direction. Moreover, business transactions require more processes. The main difference is that a company can be divided into branches such as subsidiaries. Self-employed individuals are not allowed to set up branches. If they want to open a second store, they must apply for a new business license, and the same industry can only apply for one. Invoice issuance is different

Individual industrial and commercial households can only issue 5, 3, 1.5 and tax-free ordinary invoices. The company can also apply for special value-added tax invoices such as 13, 9, and 6. Declaration methods are different

Individual industrial and commercial households can have the competent tax authorities approve and collect tax, and do not need to have a cost invoice.

Most companies need to check and collect their own accounts, and need to have input invoices, cost invoices, expenses and other bills to deduct taxes or pre-tax deductions. Different preferential policies

Individual industrial and commercial households now only enjoy quarterly sales less than 300,000 is exempt from value-added tax, but there is no exemption for self-employment income tax. Of course, the collection situation varies from place to place according to the conditions and regulations in different regions. Some companies can enjoy various preferential tax policies, such as income tax reduction and exemption for small and micro enterprises, preferential income tax policies for high-tech enterprises, etc. I hope my answer can be helpful to you. If you feel you have gained something, you can follow me. I will update things about individual industrial and commercial households every day in the future

Hello:

Individual industrial and commercial households: Individual industrial and commercial households refer to an economic form in which the means of production are privately owned, mainly based on personal labor, and the income from labor is at the disposal of the individual workers themselves.

Individual industrial and commercial households have three organizational forms: individual operation, family operation and individual partnership operation.

Limited liability company: A limited liability company, also known as a limited company, refers to a shareholder-funded establishment that complies with legal provisions. The shareholders are responsible for the company to the extent of their capital contribution, and the company is responsible for the company's debts with all its assets. Responsible corporate legal person.

That is to say, several people each contribute some money, and everyone also takes responsibility for the company. Relatively speaking, it is safe.

Some differences between self-employed and limited companies:

(1) Industrial and commercial registration

1. Different registered capital requirements

Self-employed, carry out When registering with industry and commerce, there is no minimum requirement for registered capital.

When registering a limited company, its minimum registered capital is RMB 30,000, and for a one-person limited company, the minimum registered capital is RMB 100,000. What is being implemented now is subscription, which means that the numbers filled in are not meant to deposit so much money into the bank immediately.

So in fact, the difference during registration is not that big. So what if the business loses money?

Self-employed individuals must be responsible for all debts. How much money they have lost and how much money they owe must use all their property, such as houses and cars, to repay the debts.

A limited company can apply to the court for bankruptcy protection. For example, if the registered capital is 300,000, and now it owes 1 million, then it only needs to pay back 300,000. This is legal.

2. Industrial and commercial registration

The self-employed registration is "two certificates in one", the limited company is "five certificates in one", both are "one photo, one code", in this way , whether you are a self-employed person or a company, you must file and pay taxes normally, and no one can escape, because industrial and commercial registration is tied to tax registration. As long as you are registered, the tax department can track you.

(2) Tax declaration and preferential policies

What taxes do self-employed individuals and companies have to pay? The following two parties must pay:

① Value-added tax, as long as there is sales or services provided, value-added tax is indispensable.

② Income tax, companies have to pay corporate income tax, while self-employed individuals have to pay personal income tax, which is called personal production and business income.

③ Self-employed individuals also need manpower to withhold and pay employees' personal income tax. Like companies, they also need to help employees withhold and pay personal income tax.

What about tax incentives?

Self-employed individuals do not enjoy preferential policies and do not have much investment risk in property. A limited company can enjoy many tax preferential policies and needs to prepare accounts and file taxes every month.

Individual industrial and commercial households cannot apply for an increase in tax rate of 17, but can only apply for small-scale taxpayers (3). A limited company can apply for a general taxpayer VAT invoice of 17 years old.

(3) Establish account books

Generally, within 15 days after receiving the business license, a company must set up account books in accordance with regulations, keep accounts and file tax returns.

Self-employed individuals also need to create account books, which are the same as companies. If a self-employed business owner has a relatively small business scale and cannot meet the standards for establishing accounts, he or she needs to obtain approval from the tax authorities to establish a revenue and expenditure voucher paste book and a purchase and sales register.

Both companies and self-employed individuals can hire professional accounting agencies to create accounts and handle accounting matters on their behalf.

(4) Industrial and Commercial Annual Report

The company needs to submit its industrial and commercial annual report before June 30 of each year.

Individual industrial and commercial households must submit annual reports to the registration authority from January 1 to June 30 each year.

(5) Social Security Issues

There is no doubt that companies should buy social security for their employees.

If a self-employed person hires employees, he is actually equivalent to an "employer". Like a company, he must buy social security for his employees, but there are currently no enforcement measures.

If you do not employ employees, you can also buy social security for yourself.

(6) Apply for a trademark

Both companies and individuals can apply for a trademark.

When applying for self-employment, the name on the applicant’s ID card and business license must be the same person.