Many entrepreneurs started from scratch and developed a position in the market. Such entrepreneurs, of course, should be honored for their indisputable achievements. However, in addition to the tax burden, they should not neglect the future or the transferability of their business. We often come across clients who have been running their successful businesses as self-employed persons since time immemorial. Although this legal form undoubtedly paid off for them at the beginning of their business, they currently face many threats and disadvantages compared to doing business through a legal entity (company).
Among the biggest threats, we include liability with personal assets, as well as assets in the joint ownership of spouses. We can also consider as a potential threat the fact that the inheritance of a self-employed business is not regulated by legislation in the Slovak Republic and the trade license cannot be transferred to another person. As the biggest disadvantage, we consider progressive taxation. In addition to income tax, a self-employed person is also subject to health and social insurance contributions.
If you would like to find out whether it is worth changing the legal form of business in your particular case, do not hesitate to contact us.
If you would like to find out whether it is worthwhile to change the legal form of business in your particular case, do not hesitate to contact us.
What can we offer you?
- Transfer of a self-employed business to a legal entity without suspending the business activities.
- If you are planning to run part of your business as a self-employed person and another part of your business as a legal entity, we can split your business into several separate parts. Our services include expert opinions, transaction documentation, and legal services.
- We will provide you with a tax analysis through which we will assess the tax implications of the transformation of your business.