Sole proprietorship. No corporate income tax is required, but personal income tax is required.
If you want to start a business, you can consider setting up a company or a sole proprietorship. If you want to set up a sole proprietorship, you also need to bring the necessary information and go to the Industrial and Commercial Bureau to go through the corresponding registration procedures. After obtaining the business license, you can carry out business activities.
Sole proprietorship investors have unlimited liability for corporate debts. The name of the person in charge of the enterprise must match the ID card and no aliases are allowed. According to the relevant provisions of my country's current tax laws, individual proprietorships must pay personal income tax in accordance with regulations on income from production and operation and other income.
Advantages of sole proprietorship:
1. It is conducive to the high degree of unification of enterprise asset ownership, control rights, operating rights, and income rights.
2. The establishment of a sole proprietorship. A sole proprietorship is generally relatively small in scale. In addition, there is only one shareholder, so the procedures for establishing the components are generally relatively simple, and the time required for establishment is also short. Very short.
3. For sole proprietorships, there are relatively few legal restrictions on bankruptcy. If a sole proprietorship cannot continue to operate, whether due to capital chain reasons or business management problems, as long as you want to apply for dissolution or bankruptcy, the procedure is relatively simple
4. Sole proprietorships are exempt from When collecting corporate income tax, when a sole proprietorship has multiple relatively independent businesses, it can use the method of establishing multiple sole proprietorships to reduce the taxable income of each enterprise, thereby achieving tax savings.
5. Information is easy to keep confidential. Since a sole proprietorship is a one-person company, the boss and employees of the company generally have a nepotistic relationship, so it is generally easy to protect the company’s trade secrets because few people know about it. Everyone also has interests, so they will be willing to protect the company's trade secrets.
Disadvantages of sole proprietorships:
1. The scale of sole proprietorships is limited, which limits the expansion and large-scale operations of the enterprise to a certain extent.
2. Investors have huge risks, and owners need to bear unlimited liability. When the company's assets are not enough to pay off its debts, the owners use their personal property to pay off the company's debts. It is helpful to protect the interests of creditors, but sole proprietorships are not suitable for industries with high risks. If the risk borne by the owner is too great, it limits the owner's investment activities in areas or sectors with higher risks. This is extremely detrimental to the formation and development of emerging industries.
3. Enterprise continuity is poor. Although the property rights structure in which the management rights and ownership of the enterprise are highly unified allows the enterprise to have sufficient autonomy, it also shows that the enterprise is a natural person enterprise. The illness or death of the owner, or his lack of personal knowledge and ability, the above situations may lead to Business bankruptcy.
4. Poor ability to resist risks. For a sole proprietorship, the company's financial resources depend on the investor's personal financial resources. Affected by the company's size and financial resources, the general company's ability to resist risks is relatively poor. Generally, it is easy to become unsustainable when encountering changes in the market.