Requirements for opening a mathematical school
Requirements for opening a mathematical school
Question:
Hello!
I need a consultation. I want to open a math school. What are the requirements for this. I saw requirements for opening a language center on the site, but I don't know if it's the same. I will not issue certificates. It will be used only for math lessons individually or in small groups of up to 5 people. What room should be taken? I guess it must have office status. Or it could be an apartment. Or a studio (some apartments are studios)? Which floor? What registrations do I need? Are there requirements for the teacher who gives lessons or teaches? Must have a math teacher qualification or not.
Thanks in advance!
Answer:
Hello,
We can provide you with services related to the tax and insurance aspects of your business.
In order to carry out any commercial activity (the service you intend to provide is a commercial activity), you must register in some form as a trader. There are two options for you - to carry out activity as a freelancer, or to carry out activity through a Company registered in your name. The main differences between the two options are the following:
From a tax point of view, things look like this:
- in the free profession you declare the amount of income for the year. From the amount thus received you deduct 25% of legally recognized expenses and the insurances paid during the year and you owe 10% tax on the amount thus received.
- with EOOD you declare the amount of income and expenses related to your activity. If the income is more than the expenses, then you make a profit and this profit is taxed with 10% tax.
From an insurance point of view, things are as follows:
- in the case of a freelance profession, you are insured on a monthly basis, and accordingly you must declare and pay insurance every month at least on the minimum insurance income. At the end of the year, when submitting the annual tax return, an equalization is made. This equalization looks at the realized income during the year, and if its amount exceeds the amount on which you were insured, you must add insurance on the difference. The amount on which social security contributions are paid on an annual basis cannot be higher than the maximum insurance income for the year.
- with EOOD the insurances are again paid at least on the minimum insurance income for the year and the difference is that there is no annual equalization of the insurance contributions.
Ie From a purely tax and insurance point of view, you will need to assess and make a plan about what income you expect to receive and what expenses you would have. Only in this way could you determine which form of activity is more economically viable.
Apart from the differences from the tax and insurance point of view, there are several purely functional differences:
- The money you earn as a freelancer is really your money and you can "spend" it whenever and for whatever you want. At EOOD, the money that the company earned remains with the company. If you want to have this money as an owner, there are several options - to give a salary, to give a loan or after the financial year and the company, if it has made a profit, to distribute the profit as a dividend (but will you must pay an additional 5% dividend tax on this amount).
- as a freelance profession you can work only you, ie. if you expand your business, you will not be able to hire additional staff. At EOOD this restriction does not exist and in case of possible expansion of your activity, you can easily hire staff.
- Your activity assumes that you will receive cash. If you practice your profession as a freelancer, you will not be obliged to issue a receipt upon receipt of cash. For EOOD, this relief does not apply and if you receive cash, you will have to buy a cash register.
- in order to register as a freelancer, you need to provide a diploma or some other certificate to the set of documents, which certifies your competence to provide the services you will perform.
Regarding the other aspects of the activity you will perform, we are not competent, but we will express an opinion:
- regarding the requirements to you, as a person who will provide the services - provided that you will not issue certificates for acquired qualification, level of training, etc. you are not required to have any qualifications. An exception is if you carry out this activity as a freelancer. As explained above, you will need to provide a diploma or other certificate upon registration.
- about the room in which you will carry out your activity - it does not matter where it is located and what its status is. What is important to know is that your relationship with the landlord of the premises should be regulated by a contract concluded between the two parties. You can also use your personal premises, as if you work through a company and in this case you must have a contract signed with you. You should also check with your local Regional Health Inspectorate (RHI) to see if they have any requirements for the room itself.
Finally, you should also know that if you are currently working as a teacher, you are not allowed to give private lessons to students studying at the school where you teach.
We hope we have been helpful to you.
Greetings!
