How do sole proprietorship enterprises save taxes?

From the point of view of tax saving:

① If the registered company is a limited liability company, a one-person limited liability company or a joint-stock company, after the company makes money in the future, it must first pay 25% of the enterprise income tax (regardless of the preferential policies of small-scale low-profit enterprises and special regions).

Secondly, if you want to take the money you earn out of the company, you need to pay a personal income tax of 2% dividends, and on average, you need to pay 4% tax.

For example, the net profit of your company in 219 is 2 million, and you need to pay corporate income tax = 5, = 2 million x 25%, and the remaining 1.5 million, and the personal income tax you need to pay dividends = 3, = 1.5 million x 2%.

in other words, your company has a net profit of 2 million yuan, and you need to pay 8, yuan in taxes, with a tax burden of 4%.

② If you are registered as a sole proprietorship enterprise or individual industrial and commercial household, you only need to pay personal income tax (operating income) after making money in the future.

according to the provisions of the new tax law of 219, the income from production and operation of individual industrial and commercial households and sole proprietorship enterprises is calculated at five levels of excess progressive tax rate, with a minimum of 5% and a maximum of 35%.

For example, your net profit in 219 is 2 million, and you need to pay personal income (business income) tax = 634,5 = 2 million x 35%-65,5 (quick deduction).

in other words, if you earn a net profit of 2 million yuan, you need to pay 634,5 yuan in taxes, and the actual tax burden is about 32%.

in addition, if we choose to register sole proprietorship enterprises and individual industrial and commercial households and then choose the method of approved collection, the corresponding tax rate will be lower and the tax paid will be less.

Therefore, from the perspective of tax saving, it is much better to register a sole proprietorship enterprise or individual merchant than to register a company.