Bosses Have The Most "Provincial Tax" Way.

As we all know, the investment tax and tax rate are different for enterprises of different nature. Then, at the beginning of entrepreneurship, how can we choose the most suitable enterprise nature according to our actual conditions, so that we can not only spend less money but also have better development?

Recently, Xiao Chen, who lives in Lishui, has thought of starting his own business.

Chen Yuan worked in a mechanical manufacturing company in the town for 5 years, and accumulated a certain amount of work, social experience and connections. Now, he decided to set up his own business and become a boss.

It is understood that at present, the way that individuals can choose to start a business is mainly as follows: engaging in production and operation as an individual industrial and commercial household, engaging in contracted and tenant business, establishing a sole proprietorship enterprise, setting up a partnership enterprise, and establishing a limited liability company. After comparison, he found that, under the same circumstances, the tax burden of entrepreneurs, especially income tax, is an important factor affecting the development of enterprises.

Xiao Chen, who did not know the tax policy, was worried and had to come to the tax department. He hoped that the tax experts would give him directions.

The tax official told him that the income from the production and operation of the individual industrial and commercial households and the individual's income from the contracting and leasing business of enterprises and institutions shall be subject to the five level progressive progressive tax rate of 5%~35%.

As for the tax burden of the sole proprietorship enterprise, the tax policy stipulates that since January 1, 2000, the enterprise income tax has been levied on the sole proprietorship enterprise, and the investment income of the sole proprietorship enterprise investor has been levied on the individual income tax of the individual industrial and commercial household's production and business income.

Let's look at the tax burden of partnership. Like the sole proprietorship enterprise, since January 1, 2000, the enterprise income tax has been levied on the partnership, and the investment income of the partners has been levied on individual income tax according to the production and business income of the individual industrial and commercial households.

It is not difficult to see that in the same income situation, the tax burden of the three business forms of individual businesses, individual proprietorship enterprises and partnership enterprises is the same. They do not need to pay corporate income tax. They only pay personal income tax for their production and business income and other income obtained by their investors, and apply the five level progressive progressive tax rate of personal income tax.

The tax burden of limited liability companies is mainly enterprise The enterprise income tax is paid according to the profit. The tax rate is divided into three grades according to the amount of taxable income, the size of the enterprise and the industry. Under normal circumstances, the corporate income tax rate is 25%; the small and small profit enterprises that meet the requirements shall be subject to enterprise income tax at a tax rate of 20%, and the state supported high-tech enterprises shall be levied at a rate of 15%.

Since Xiao Chen's entrepreneurial projects do not meet the requirements of hi-tech enterprises, the tax officers analyzed the tax burden by referring to the standards of individual businesses, individual proprietorships, partnerships, and general limited liability companies.

Assuming that Xiao Chen's taxable income is y, when the Y is less than 5000 yuan, the first three enterprises (pay personal income tax) have a 5% tax rate, and the quick deduction is 0; the rate of the limited liability company (enterprise income tax) is 20%; when the 5000 yuan is 300000 yuan, the tax rate applicable to the first three enterprises (personal income tax) is 35%, and the quick deduction is 6750; the tax rate applicable to the limited liability company (enterprise income tax) is 25%.

This shows that in the first three cases, Individual businessmen and businessmen Individual proprietorship, partnership and limited liability company. tax rate It is the same. These three kinds of enterprises can also deduct the quick deduction, so the tax burden is low.

In the fourth case, the tax rate of these three enterprises starts to be higher than that of the limited liability company. However, because of the existence of quick deduction, it is necessary to find a "critical point" and use the formula to calculate the "critical point" at y * 30%-4250=y * 20%, and get y=42500 yuan. That is to say, when the taxable income of enterprises is y<42500 yuan, the tax burden of the first three types of enterprises is lighter; when y>42500 yuan, the form of limited liability company has a lighter tax burden.

Seeing here, Xiao Chen is suddenly enlightened. If the profits of his enterprises are less than 42500 yuan a year, then it is more cost-effective to choose entrepreneurship with individual businesses, individual proprietorship enterprises and partnership enterprises than to choose a limited liability company. If the profit is equal to 42500 yuan, then the nature of the enterprise will be the same no matter what kind of enterprise it chooses. If the profit is greater than 42500 yuan, then the nature of selecting a limited liability company is more cost-effective.

However, tax officials also reminded him that the three types of enterprises, such as sole proprietorship enterprises, partnership enterprises and limited liability companies, are legal entities. They have an advantage in the purchase of invoices, the recognition of taxpayers, etc., and are relatively easy to carry out business. They have a wide scope of operation and enjoy some preferential tax policies of the state.

In addition, the limited liability company only assumes limited liability, while the sole proprietorship and partnership should bear unlimited liability and have greater risks. When making investment plans, individual investors should take full account of all factors and choose the best investment plan.