When should I change from a sole proprietorship to a limited company?
Changing the business from sole proprietorship to a limited liability company may be a good idea when business activities grow, risks are limited or taxation is reduced.
- When the tax rate exceeds 30%.
- If new owners are joining (or leaving) the business.
- For risk management purposes (recruitment) or financing
- To pay dividends and optimize taxation.
Changing the business from sole proprietorship to a limited liability company may be a good idea when business activities grow, risks are limited or taxation is reduced. The rule of thumb: if the entrepreneur's marginal tax rises to a high level, the limited liability company may be tax lighter.
Other reasons may include new owners/partners, the transfer of a balance sheet-accumulating business, or requirements from financiers. It is advisable to discuss the matter with an accountant or tax expert.
- Running companies, new entrepreneurs, growth companies
- Business premises and facilities
- Regional responsibility: Vaasa, Korsholm
- Running companies, new entrepreneurs
- Businesses' workforce and competence needs
- Regional responsibility: Vaasa, Korsholm