Company expense

Company expense

 

Question:
Hello!

I am in the process of personal reorganization. I have been a freelancer for three years, working and insuring myself as a self-insured person. In the meantime, two years ago I registered an EOOD, of which I am the sole manager, but so far it has not had any activity. My intention is to transfer my activity, which I am currently performing as a self-insured person - to my company. Ie at some point I intend to declare that I am closing my business as a self-employed person and starting a business on behalf of my company. My question is this: Since I am about to make an investment in connection with one of the activities I intend to develop, what if I make the investment on behalf of the company and will it be considered as an expense if I am still a company without activity? And, for example, do I declare myself from self-insurance to activity on behalf of my company one or two months after the investment? Will I be able to benefit from respecting this cost, even if at the time I made it, I was a self-employed person (not an operating company) in terms of employment?

Thanks!

 

Answer:

Hello,

If you want the expenses you make for the activities of your company to be recognized for tax purposes, then the activity of the company must be started before you make the expenses. The start of the activity is also an obligatory beginning of the insurance of the person who manages the company. If for the management of the company from the manager (in your case also the owner of the company) he receives remunerations, then the insurances will be made on the basis of the minimum insurance income for the first group (out of nine groups) of the activity you will carry out. If the management contract (which you as a manager of the company according to the entry in the Commercial Register) states that you will manage the company without remuneration, then you will have to insure yourself as a self-insured person through your company. A declaration form 5 for starting an activity and self-insurance through the company is filled in. As you already have a valid self-insurance, in the submitted declaration you will only register the beginning of an activity, without ticking the beginning of the self-insurance. Each person can have self-insurance through only one company or individual. You should keep in mind that if you are going to insure yourself as a manager with remuneration, then the insurance on the income received (but not less than the minimum for the first group for your activity) will be under a management contract (another reason from a self-insured person) and until you interrupt your previous self-insurance as an individual, you will have to insure yourself on both grounds

We hope we have been helpful.

Greetings!