When is the right time to switch from sole proprietorship (SP) to a limited company?
- Rule of thumb: when your tax per cent exceeds 30
- The company changes ownership
- Risk management perspective
- At a financier’s request
- When you have enough balance to pay dividends on top of salaries
- When you want to transfer income from taxation of earned income to capital income taxation, for example, when receiving pension income in addition to entrepreneurial income