Freelance, Ltd (EOOD) or Sole trader (ET)

Freelance, Ltd (EOOD) or Sole trader (ET)  

 

Question:

Hello,
иI have the following question: How is it best to register? I am a graduate engineer. Machine engineers can register with a freelance profession. How is the most economically profitable as a freelance profession, such as EOOD or ET. In which case can I keep my account myself? What are the cost per month for each type of insurance? For one year I will have to write about 5-6, at most 10 invoices, for TOTAL about 8000-10000 BGN. I know that a company account is needed due to the fact that I do not have a cash register. How is a free profession in writing invoices? When registering a freelance profession, should I have a seal and what is the format of the invoices?

 

Answer:

Hello,

On the question of the form of doing business 

For ET it is better not to think - in this form you are responsible with all your personal property for the results of your business activity - your personal property can serve to satisfy any claims of your contractors and institutions related to the business activity. You will need professional accounting. The positive thing is that you can use the proceeds of the activity as personal immediately before declaring and paying a 15% tax.

With EOOD, your personal responsibility is limited to the amount of your fixed capital contribution made at the time of registration. The Owner is personally not responsible for the results of the activity of EOOD and his personal property is protected by 100% of creditors and creditors. The bottom line is that the owner can use corporate funds as personal only after distributing the 10% corporate tax at the end of the year and paying a 5% dividend tax. (In addition to the salary he may receive during the year as a manager). You will need professional accounting.

In the exercise of a liberal profession, you owe a 15% tax at the end of the year to all realized earnings, reduced by 25% of the legally recognized costs. Professional accounting is not required but only accurately records and records revenue generated by the business. As with the ET you can use the funds received from the activity as personal immediately before declaring and paying a tax. The amount of the tax is 10%.

In all three forms, you will need to register with the Commercial Register. Upon reaching a turnover of BGN 50000 for a period of 12 months, you are required to register under the VAT Act There are different options for social security costs and we will explain them in detail if you visit one of our offices where you will receive Free consultation on the issue. In any case, it's a good idea to have a bank account in the name of the form (ET, EOOD or freelance profession) that you choose to conduct business.

The content of the issue of invoices must in all three forms of business correspond to the same requirements specified in Art. 7 of the Accountancy Act. The layout of the requisites is not strictly worded in normative documents. There are a number of free and paid invoices, notifications and minutes that you can find on the internet.

We hope we have been helpful.

Best regards