Having one's own successful business is the dream of many people. What is more, it is an excellent form of not only earning, but also developing, and the owner himself can combine the pleasant with the useful - that is, hobby with work. Although the vision of an independent venture sounds tempting, running your own business involves a number of issues that you should be aware of before deciding to start up.
Just setting up a business is a simple and quick process. It only takes one day to register your business and legally start making money. However, every entrepreneur should realise that being an owner in practice means a mass of paperwork that needs to be dealt with in a timely manner at the authorities.
The first of these appear at the very beginning, when the entrepreneur goes to the office to register his/her business activity. Although the basic step in this situation is to make an entry in the CEIDG, the registrant must not forget to also provide the PKD codes, obtain licences, permits or concessions authorising him to run the business, choose the form of taxation and register with the Social Security Office.
When is the best time to set up a business?
The answer to the question of when is the best time to start one's own business is multifaceted. To a large extent, the decision depends on the entrepreneur's personal circumstances - available financial resources, time or mobilisation for action. On the other hand, starting a business will be closely linked to its form of operation and all the necessary formalities.
Running your own business inevitably entails paying Social Security. However, entrepreneurs who have not carried out any activity in the last 5 years and whose current company does not in any way cooperate with their former employer to the extent overlapping with their previous obligations, can benefit from the so-called small ZUS. In practice, this means much lower charges for 24 months of activity.
The right to the small ZUS starts from the first day of the first full month of business. Therefore, by setting up after this date - i.e. in an incomplete month - the right to the small ZUS will automatically extend by almost a month. To illustrate this with an example:
- by opening the company on the second of January, the entrepreneur will pay a small Social Security for January 2020 - as it is not full,
- For the period from February 2020 to January 2021, he will also be entitled to small Social Security,
- The first standard fee will therefore not be paid until February 2021.
Is it worth it to be a VAT taxpayer?
Another very important issue, when running your own business, is VAT. Very many entrepreneurs ask themselves whether it is worthwhile to be a VAT payer. To begin with, it should be emphasised that it is voluntary. Registration for VAT only becomes compulsory when the turnover limit is more than PLN 200 000. The exceptions are companies that are obliged to register for VAT, e.g:
- jewellery,
- providing legal and advisory services,
- involved in the sale of alcohol.
When running a business in another industry, the entrepreneur has the right to decide for himself whether he will become a VAT taxpayer or a VAT-exempt taxpayer. Nevertheless, the first option entails many advantages for the business owner.
The first one comes from making purchases for the business. If the VAT on purchases is higher than the VAT on sales, the entrepreneur is entitled to a refund of the excess VAT charged. It will also be important to know to whom the services will be directed. Being VAT-registered may become a disadvantage when offering services to individuals - they will have to pay the price plus VAT. However, if the contractors are also VAT-registered, you can count on an easier cooperation.
Being VAT registered is also profitable when the services sold reach abroad. In that case, VAT is not charged on the sale (it is paid by the customer), but the entrepreneur is entitled to deduct VAT on purchases.
Bookkeeping
Before deciding to run your own business, it is also worth thinking about accounting. An entrepreneur can use the services of an accounting office or take control of the accounts himself. In such a situation, it will usually be necessary to expand one's knowledge on the subject. The business owner can also use special software to avoid accounting mistakes.
Kasa fiskalna
Running a business that sells to individuals is also subject to the obligation to have a cash register. In some cases, however, it is possible to be exempted from this obligation. Pursuant to the legal regulations, persons whose turnover for private individuals and flat-rate farmers does not exceed PLN 20,000 are exempt from the obligation to use cash registers. The absence of the need to keep records may also result directly from the nature of the business.
