At the beginning of a business, many of us may be confused on whether to register as a juristic person, or if they should conduct business in the form of an ordinary person.
Today we are going to talk about the advantages of registering as a juristic person so you can be informed in making your decision. There are several advantages of registering as a juristic person, including:
- Paying taxes according to the actual profit incurred based on the account. But if in any year the business has a loss, it is not necessary to pay annual taxes.
- Corporate taxation must be paid at a maximum rate of 20%, which is less than the personal income tax with a maximum rate of up to 35%.
- Business looks more reliable.
- Reduce confusion in managing finances, because the separation between business money and personal money is clearer.
- In the event of company bankruptcy, the shareholders of the company will only lose assets according to the share value.
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Line Official: Pimlegal