Xu Xinchi set up a personal studio. What are the advantages of setting up a personal studio?

Recently, Xu Xinchi formally established a personal studio. Once the news was sent out, it quickly went to the hot search, which aroused widespread concern of netizens and triggered a heated discussion among netizens. Some netizens can't understand that Xu Xinchi set up a studio. They don't think Xu's strength needs a studio. However, other netizens are relatively calm about Xu Xinchi's establishment of a studio, and stars like to set up personal studios. So, what are the advantages of setting up a personal studio?

First of all, celebrities can reduce taxes by setting up personal studios. We all know that the personal income tax that stars need to pay is very high, and it is precisely for this reason that many stars take risks and evade taxes. Under normal circumstances, the income earned by stars from advertising, endorsement, drama, etc. Be taxed at 45%. However, after the star set up a personal studio, the tax rate decreased, because the personal studio is essentially a sole proprietorship enterprise. According to China's regulations, the highest tax rate applicable to the operating income of a sole proprietorship enterprise is 35%. After a star establishes a studio, its tax rate will be reduced by 10%. I believe that every star will choose to set up a personal studio.

Secondly, the star has absolute autonomy after setting up the studio. As we all know, in the entertainment circle, artists must obey the arrangement of the company after signing a contract with the company. If there is anything that damages the contract, it is necessary to compensate. However, after the stars set up the studio, they can choose their own endorsements and scripts. And they are no longer subject to the company. In this way, the stars have absolute autonomy and relative freedom.

Third, celebrities can increase their personal income by setting up studios. Before the star set up the studio, he should allocate the service fee according to the contract signed with the company and pay the fee to the brokerage company. After the stars set up the studio, they can avoid economic expenses through cooperation such as advertising and bringing new people, and they don't need to allocate labor expenses according to the contract, which can obviously improve the personal income of the stars.

It is for these reasons that stars have set up studios, which can not only avoid being squeezed by the company, but also increase their income. At the same time, compared with setting up a company, the threshold for setting up a studio is lower and the procedure is very simple. Many stars enter the circle just to make money. If there is a way to reduce taxes and earn more money, and it is still relatively free, stars will definitely choose this method, and it is a personal studio.