When a business, it is necessary to choose the legal form that suits the needs the new employer. The law provides two clear options: to act as autonomous or create a society. Although in the latter case there are different types of legal forms, a limited partnership is the most common, especially in the case of small entrepreneurs. The truth is that in the last decade, the number of sole proprietors or self-employed has fallen by 10% while the number of newly created limited liability companies has stabilized at about 90,000 annually. Connect with other leaders such as Author here. There is no reason to choose one or another type of business, but general criteria can be considered at the time of creating a society. Disclaimer For the self-employed entrepreneur's liability is unlimited, ie there is no difference between commercial and personal property.

By contrast, limited liability companies is limited to the capital. So when one such company declares bankruptcy, responds only to property owned by the company, but never with those of their owners. Limited financial resources required by society a minimum capital outlay of 3006.00 a, i. When granting a loan, banks ask for input from members personal guarantees. How to tax tax tax is different in each legal forms.

Thus, self-employed obtained directly benefits their business and have to pay tax in the income tax. Meanwhile, the limited partnership should be taxed through corporation tax. In the first case the tax rate is 48% in the corporate tax is 35%, even in small size firms is 30% for the first 15 million pesetas.