We know that starting and maintaining a company is not a simple job and we do not want tax obligations to be an obstacle for entrepreneurs to achieve success. Thus, we are here to show the correct way to collect taxes and, thus, guarantee the sustainability and fairness of your company. Tax planning is essential
So, again, go with us to this lesson on billing taxes. Ah, before we go to taxes and their rates, we will review the legal formats and tax regimes in which companies can fit. Come on. The state tax calculator is the best choice there.
The legal formats available in legislation
It is impossible to open a company without knowing exactly what its legal format is. What we mean by that is that, at the time of registering the business, when registering with the CNPJ, they will question whether you are opening an EPP or a SA, for example. This definition is important because it has an influence on the taxes you will pay up front. So, let’s get to know the available legal formats of the legislation:
MEI – Individual Microentrepreneur
The Individual Microentrepreneur (MEI) is a legal form of company that emerged to end the informality of professionals who work on their own. In this way, it helps to formalize the work of freelancers and professionals.
In order to qualify for the MEI, the entrepreneur must earn up to R $ 81 thousand per year, equivalent to R $ 6,750 thousand, per month and cannot participate in another company as a partner or holder . He can hire 1 employee, provided he receives a minimum wage or the floor of the category.
EI – Individual Entrepreneur
The Individual Entrepreneur (EI) is one who carries out a business activity in his own name. It is a company that is only an individual, in which there is no legal separation between your personal assets and your business, that is, the principle of separation of assets does not apply.
Care must be taken not to confuse MEI and IS. The latter has a much greater variety of activities that can be performed, in addition to being able to count on an unlimited number of employees. In contrast, it deals with more requirements in relation to ancillary obligations.
ME – Microenterprise
A Microenterprise (ME) is one that has annual sales of up to R $ 360 thousand. In it, there is only one holder who will bear all the responsibilities for the company’s debts , since in this legal format the personal and business assets are unified. ME can employ up to 9 people, in the case of trade or services, or up to 19, in the industrial and construction sectors.
EPP – Small Business
The Small Business (EPP) is a legal format that includes companies with annual revenues between R $ 360 thousand and R $ 4.8 million. They can employ 10 to 49 people (commerce or services) and 20 to 99 (industry and construction).
EIRELI – Individual Limited Liability Company
The Individual Limited Liability Company (EIRELI) is one that consists of a single holder and has a share capital of at least 100 current minimum wages. An important feature of this legal format is the separation between personal and business assets. Thus, in case of debts, only the company’s equity is compromised. That is precisely why the demand for a social capital equivalent to 100 salaries is made. Thus, in the case of bankruptcy, creditors know that they will be able to receive their money.
