Sign up Calendar Latest Topics
 
 
 


Reply
  Author   Comment  
bestgamesstudios

Avatar / Picture

Senior Member
Registered:
Posts: 535
Reply with quote  #1 
Hey guys, I must soon decide my legal tax status in Ukraine, and decide if I should become an LLC or Enterpreneur: the company I mentioned in the last video (the one which takes care of the Ukrainian requirement for there to be "documents" about the payments) gave me to options:

1. Remain a sole entrepreneur, 5% tax and around 15$ of monthly fees - I have to do some small online paperwork each time I receive a payment

2. Become an LLC in partnership with them (woo!! Best Games Studios will become a real company!) - 11% tax, 15$ monthly fees, all the paperwork will be done by them

note: the integrity of that company is not the issue, though I will make sure to carefully read any agreements/ consult a lawyer.  They also said once I plan to hire people, it can easily be changed to the LLC.


I really can't decide on the best option though since both are tempting- in either case, the tax is low, considering in Lithuania it was 16%. I guess, the LLC thing is more psychological though, since it will give the entire thing some "legitimacy" and secure the name, where as the other route I'll be like "what if someone takes the name?" Also, I've never been into accounting, so what if I mess up something in the taxes - what would you do in my situation?

__________________
https://play.google.com/store/apps/developer?id=Best+Games+Studios
Diary: http://www.howtomakemobilegames.com/post/best-games-studios-diary-7386298?pid=1288723175
0
mmgames

Member
Registered:
Posts: 39
Reply with quote  #2 
In terms of accounting, maybe hiring an accounting office to do all the accounting for you is a good idea?

You just send them revenue invoices, cost invoices on a monthly basis and they calculate all tax responsibilities for you...
Though, it highly depends on your country tax laws. Usually accounting cost for LLC's are higher.


0
Roman

Avatar / Picture

Senior Member
Registered:
Posts: 304
Reply with quote  #3 
If you are sole entrepreneur in Slovenia, you have to pay around 350€ per month and 22% tax. I guess I'll have to move to Ukraine. =)
__________________
http://wasted-droid.com
0
bestgamesstudios

Avatar / Picture

Senior Member
Registered:
Posts: 535
Reply with quote  #4 
Quote:
Originally Posted by Roman
If you are sole entrepreneur in Slovenia, you have to pay around 350€ per month and 22% tax. I guess I'll have to move to Ukraine. =)


Whaa?? Wow, that's really a lot if you are just starting a business - 350€ per month is pretty much what I'm earning now from my apps, so that fee would have prevented me from becoming an entrepreneur/ made it waay more difficult. Doesn't Slovenia have some tax rules that if you are earning less than a certain amount, you can pay less?    Anyhow, this makes your accomplishment even greater, since you had to overcome this, so you have even more of my respect!





__________________
https://play.google.com/store/apps/developer?id=Best+Games+Studios
Diary: http://www.howtomakemobilegames.com/post/best-games-studios-diary-7386298?pid=1288723175
0
Grumpy

Senior Member
Registered:
Posts: 318
Reply with quote  #5 
I started off as a sole trader and now have a UK LTD company.

TBH I wish I'd just formed the LTD company straight away, the accounting and stuff is much easier as a sole trader, but if you intend to be a LTD company in the future (which if you want to hire people you really need to do) then it's probably less hassle to do it just straight away. That way you can get practice in with the finances before you have any real responsibilities (like employees). As it is I have some money coming to my sole trader, and some to my business. It's not a massive problem, but it would have been simpler just to have the one entity from the start for me.

But, yeah, sounds like it's very different in different countries.
0
mmgames

Member
Registered:
Posts: 39
Reply with quote  #6 
What is the tax on dividends in UK Ltd? If i remember correctly, corporate tax is 20%..
0
Grumpy

Senior Member
Registered:
Posts: 318
Reply with quote  #7 
It's changing in April. You used to get tax credits on dividends which worked out really well, but now you it's something like a £5,000 tax free allowance, and then you pay anywhere between 7.5% to something like 30% based on how much income you earn.

But if you pay yourself a salary you'll pay income tax like you would if you were a sole trader and avoid Corporation tax. It's all pretty confusing, but my dad is an accountant, and luckily I'm not earning enough to really lose much to tax anyway. [cool]
0
Roman

Avatar / Picture

Senior Member
Registered:
Posts: 304
Reply with quote  #8 
Slovenia is very expensive to start a business.(most of successful Slovenian developers open their companies in UK or Cyprus) If you open a bigger company you have to pay around 7000€ as starting capital and after that you have to employ yourself for a minimum wage(minimum)(around 800€ in Slovenia)+ 22% tax + tons of extra documentation. [biggrin]
So... it's better to pay 350€ per month +22% taxes and be a entrepreneur.(until you start employing people)


Quote:
Originally Posted by bestgamesstudios


Whaa?? Wow, that's really a lot if you are just starting a business - 350€ per month is pretty much what I'm earning now from my apps, so that fee would have prevented me from becoming an entrepreneur/ made it waay more difficult. Doesn't Slovenia have some tax rules that if you are earning less than a certain amount, you can pay less?    Anyhow, this makes your accomplishment even greater, since you had to overcome this, so you have even more of my respect!





__________________
http://wasted-droid.com
0
Previous Topic | Next Topic
Print
Reply

Quick Navigation:

Easily create a Forum Website with Website Toolbox.