Corporation Limited Society

The law offers two clear options: act as self-employed or create a society. Although there are different types of legal forms in the latter case, the limited partnership is the most common, especially in the case of small entrepreneurs. The truth is that in the last decade, the number of individual or self-employed businessmen has fallen 10%, while Corporation Limited of new creation figure has stabilized at about 90,000 annually. There are no compelling reasons for choosing one or another type of company, but yes general criteria that can be considered at the time of creating a society. Limits of liability in the case of the freelance entrepreneur liability is unlimited; i.e. There is no difference between the commercial assets and personnel. On the contrary, in limited societies responsibility is limited to capital. Thus, when a society of this type is declared bankrupt, it responds only with assets owned by the company, but never with their owners.

The limited partnership financial resources requires the disbursement of a minimum capital requirement of 3006,00 a., . When granting a loan, banks ask for partners the contribution of personal guarantees. Tax how to file tax returns is different in each of the legal formulas. Thus, the self-employed entrepreneurs directly benefit from its business activity and have to pay taxes at the personal income tax. Meanwhile, the limited partnership must pay taxes through tax. In the first case the tax rate is 48%, tax is 35%, even in companies of reduced dimension is 30% for the first 15 million pesetas.

However, there are considerable differences in the deduction of expenses. Number of promoters, when there is more than one partner will typically form a society, but there are one-person limited companies, constituted by a single member. Proceedings start activity as individual entrepreneur is faster and easier than if opts for a private limited company, and sometimes is the key factor to choose a trust type Finally, the fact that a limited partnership is obligated to deposit their accounting data in the register offers additional guarantees to customers and suppliers that an individual entrepreneur.