EconPapers    
Economics at your fingertips  
 

Optimizing Tax Costs relating to a New Business

Maria Zenovia Grigore () and Mariana Gurău ()
Additional contact information
Maria Zenovia Grigore: Nicolae Titulescu University of Bucharest
Mariana Gurău: Nicolae Titulescu University of Bucharest

Global Economic Observer, 2017, vol. 5, issue 1

Abstract: A start-up has several options when it comes to the legal structure of the new business. The simplest business set up is as a sole trader/authorized natural person (ANP), but another popular option is a limited liability company (LLC). Each way of forming a new business has different tax consequences, as well as other implications, such as the extent of personal liability for business debts, perception to the outside world or the entrepreneur's training requirement. In this paper we will present the main differences between trading as a sole trader or a LLC in Romania, in terms of the tax consequences, administration and other non-fiscal aspects with regards to the 2017 tax year. This article contains a synthesis of the tax obligations of ANP and LLC and a few practical examples concerning the mechanism of tax optimization regarding the legal structure of the business.

Keywords: authorized natural person (ANP); limited liability company (LLC); tax optimization; corporate income tax (CIT); micro-companies income tax (MIT); personal income tax (PIT); social contributions; tax on dividends (search for similar items in EconPapers)
Date: 2017-06
References: Add references at CitEc
Citations Track citations by RSS feed

Downloads: (external link)
http://www.globeco.ro/wp-content/uploads/vol/split ... vol5_no1_art_024.pdf First version, 2017 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ntu:ntugeo:vol5-iss1-17-201

Access Statistics for this article

Global Economic Observer is currently edited by Serghei Margulescu and Simona Moagar-Poladian

More articles in Global Economic Observer from "Nicolae Titulescu" University of Bucharest, Faculty of Economic Sciences Contact information at EDIRC., Institute for World Economy of the Romanian Academy
Series data maintained by Stefan Ciucu ().

 
Page updated 2017-09-29
Handle: RePEc:ntu:ntugeo:vol5-iss1-17-201