The Type Of Organization To Invest Should Be Tailored (1).

A partner of a partnership asked for a call. Why does the profit that the state gains from the partnership tax on the partnership is almost the same as the size of the company owner?

What is the difference between partnership and general companies in terms of tax burden?

According to our understanding, since the State Council announced in June 2000 that it has suspended corporate income tax on sole proprietorship and partnership business from January 1, 2000, individual proprietorship and partnership have entered a period of rapid development only after the personal income tax has been levied on their investors' production and business income.

However, some investors found that although they had already saved a corporate income tax, they did not have the expected tax burden.

Why?

The key is that many investors lack serious comparison of tax burden and tax burden on individual proprietorship, partnership and general enterprises.

At present, the main economic options for Chinese citizens to invest in economic entities are: individual businesses, individual proprietorships, partnerships, or general enterprises, such as limited liability companies and Limited by Share Ltd.

How to choose in these forms?

First, consider the possibility.

Because of the establishment of these forms of economic entities, laws, regulations and regulations have been defined in a more definite way.

For example, the law of the sole proprietorship enterprise stipulates that the establishment of a sole proprietorship enterprise requires investors to be a natural person, not a person who is prohibited by law or administrative regulations from engaging in for-profit activities, such as a state official.

For the establishment of a limited liability company, there are more conditions: for example, the number of shareholders requires more than two people or less than 50 people. The registered capital has different requirements according to the different nature of the company. It belongs to production and operation, with a minimum registered capital of 500 thousand yuan, and a minimum of 300 thousand yuan based on commercial retail.

Therefore, when making investment decisions, we need to consider whether we meet the relevant requirements.

Secondly, we should consider whether the industries invested and operated, and whether the laws and regulations have clear requirements for the form of economic organizations.

For example, the establishment of a law firm is mainly in partnership.

Third, we should carefully weigh the tax burden of various economic organizations.

There are many reasons for tax burden among different forms of economic organizations.

It mainly includes taxpayers who belong to different categories of taxes because of different business sectors. For example, when engaging in commodity production and purchase and sale activities, they need to pay VAT and sometimes pay consumption tax, while those engaged in the service industry mainly pay business tax.

Due to the different forms of organization, there are no taxes to pay, such as individual business, sole proprietorship and partnership.

This kind of analysis must be accurate and comprehensive. We should not only know that a sole proprietorship enterprise or a partnership enterprise does not pay corporate income tax, but we must register it as a sole proprietorship enterprise or partnership enterprise.

We compare the income tax burden of sole proprietorship, partnership and limited liability company.

The income from individual proprietorship enterprises and partnership enterprises does not pay corporate income tax, and their production and operation income is subject to the "5 level" excess progressive tax rate of 5% to 35%, which is paid by individual income tax according to the taxable items of "income from production and operation of individual industrial and commercial households" in the "personal income tax law".

The income of a limited liability company is derived from the company's after tax profits, mainly from interest, dividends and dividends. The personal income tax is paid at a rate of 20%.