LTD or sole proprietorship is a usual dilemma. Almost every entrepreneur has to decide. What works best? What are the main differences? Let’s look at the two most common business forms in Slovenia. Do you also want to open business in Slovenia? Call us on +386 40 530 718 or write to email@example.com!
Which business form is best for you?
When someone wants to become an entrepreneur, they have to choose a legal organizational form for the business in the first place. In Slovenia they can choose between LTD or sole proprietorship (s.p.). There are also other forms of business, but those two are undeniably the most popular. Our business consultants often have to answer the question: LTD or sole proprietorship? But a lot has to be taken into consideration. There are a lot of differences between the two forms. Firstly, there is the legal form. An s.p. is a natural person. LTD on the other hand is a legal entity.
Are you planning on establishing an LTD or sole proprietorship? You can open a business at our DATA point. For an appointment, call +386 40 530 718 (Viber/WhatsApp). You can also write us: firstname.lastname@example.org.
Founding capital for LTD or sole proprietorship
Another question that entrepreneurs usually have is the founding capital. Do you need money, to open an LTD or sole proprietorship? In fact, you won’t need a founding capital for s.p. Establishing sn LTD, on the other hand, requires a founding capital. The minimal amount is €7500. It usually has to be in form of money. It is so in case you want to open a business at our DATA point.
LTD or sole proprietorship – what is the responsibility?
Responsibility is deciding factor. In case of an s.p., the owner is absolutely responsible. This means they are liable with not only business assets, but also all personal assets. On the other hand we have the LTD shareholder. Their responsibility is limited. Because it is a capital company, they are only liable with the company’s capital.
What about the tax?
Another important factor are taxes. They can affect the decision between LTD or sole proprietorship. LTD’s usually pay a tax, based on their profits. The rate is usually 19 %. However, in some cases, the taxed can be standardized. This means they would be taxed on standard cost. Standard costs are more usual with sole proprietors. In addition to that, they can pay taxes based on actual expenses. If you are not sure what the best decision is for you, our accounting experts can help.
Open an LTD or sole proprietorship at a DATA point
Now you learned key differences between LTD and s.p. Here at Data we can help you with both. For further questions, ask our business consultants. Reach us on Viber or WhatsApp +386 40 530 718. Write us an e-mail: email@example.com. We also offer legal sevices. If you decide to open a business with us, you can get an accountant from our accounting service. Here at Data, we we have over 30 years of experience!