Differences between s.p. and d.o.o.

Founding capital The main advantage of the establishment of s.p. is that you do not need foundry capital. It is enough to justify the SPOT point where you edit all the documentation and establish your own s.p. Also d.o.o. you can easily set up at SPOT point for free, but you need a startup capital of € 7,500.
Business As regards business, s.p. and d.o.o. Equivalent, both issue revenue accounts and obtain expense accounts. A sole proprietor can completely dispose of his earned money, which is not the case for a company member, since the money earned is not his, but the money of the company. In the event that a shareholder pays him, this money is taxed twice. First, as a gain, then even as a profit that is paid to the owner.


One of the factors influencing the decision is primarily the amount of expected profit, since the rates of taxation of profits for s.p. and the company are very different. For large profits, the preferred form is d.o.o., and for smaller profits, s.p. For d.o.o. taxation is fixed irrespective of profit and is 18% in 2012 (corporation tax), however, it is necessary to add 20% of the capital gains tax (for 2012) in the event that we want to pay the profit as a shareholder of the company . This tax is payable on the payment of dividends (profit). An individual entrepreneur is taxed according to the amount of profit that he generates, according to the income tax scale. The lowest tax rate at s.P. is 16% and applies to profits of € 7,840. For profits above the above amount, 27% tax is payable, and the next level is 41% (data for 2012). The scale is progressive, which means that by increasing the tax base only the taxation of an amount exceeding a certain level increases.
Responsibility It is important, how much responsibility an individual prepared fort he consequences, since it is s.p., he is absolutely liable and liable with all his assets, while a shareholder in the company is responsible only with the invested capital.
Pay The next difference comes when pay is paid - this is not recognized as a cost with a sole proprietor. The profit of a sole proprietor is at the same time his pay, so he can not claim his salary as a cost. In the case of d.o.o. costs include all costs, including the salaries of directors whose places are normally occupied by company members. Unlike directors of companies, independent entrepreneurs are charged with social contributions, the amount of which depends on its profit. Corporate directors pay social contributions on the basis of their salary, which is specified in the contract and as such does not depend on the profit of the company.
Contributions At s.p. we have three options for paying contributions. The first option is to pay the full amount of contributions for regular s.p. The TARS shall publish the amount of social security contributions for each month. The other option is to pay lower contributions, which is the case for those who are already employed or have the status of a student and a student (afternoon s.p.). This for those who are employed for 40 hours or more per week, is about 37 euros. For those who are employed for less time and students and students, it amounts to about 150 euros per month. The third option is standardized by the tax office, where a certain tax rate is paid in advance. The tax base, on the basis of the standardized expenses, is, unlike the usual tax, where it is determined on the basis of revenues deducted from the costs.
Legal form S.p. - sole trader - is a natural person performing an activity. D.o.o. (limited liability company) is a legal person who also performs some activity or several activities.