First, the conclusion
The advantage of becoming a sole proprietor is that it becomes easier to manage income and expenses as a business, and you can consider filing a blue tax return. The disadvantage is that there is more to think about, such as bookkeeping, tax returns, social insurance, and consumption tax.
| Check points | way of seeing |
|---|---|
| Benefits | You can consider filing a blue tax return, which makes it easier to organize your business income and expenses. |
| Disadvantages | The burden of bookkeeping, tax returns, and fund management increases. |
| person for | People who have continuous sales and want to grow it as a business. |
| Caution | Office workers should also check their work regulations. |
The important thing when reading tax articles is not just memorizing the system name. It's about looking at your income, accounts, deductions, and reporting methods separately.
common misconceptions
- It is simplified by saying that filing a business opening notification will save you taxes.
- Put off accounting and tax funds.
- Don't check the company's side job regulations.
This is an area where it is easy to get confused just by reading the search article. In particular, "sales" and "income," "income tax" and "resident tax," and "NISA" and "taxable account" need to be treated as different things.
Order of actual checking
If you are confused, it will be easier to organize if you check them in the following order.
- Is there continuous sales?
- Are you planning to use the blue tax return?
- Can you keep bookkeeping?
- If you are a company employee, have you checked the regulations?
If it is still difficult to make a decision after looking at the above, it is safer not to leave it to your own judgment. Please check through official channels such as consultation with the tax office, the National Tax Agency's tax return preparation corner, and consultation with a tax accountant.
Summary
Deciding whether to become a sole proprietorship is not just based on tax savings. Consider the continuity of income, record-keeping burden, and relationship with the company when making your decision.
While it's hard to get away with not knowing about taxes, there's no need to fear them too much if you sort them out early. When your income increases, when you start investing, or when you want to use deductions, it is most practical to prepare your records early rather than at the end of the year.