Starting a business (In Sweden) Who am I? Todays topics Type of - PowerPoint PPT Presentation

Starting a business (In Sweden)

Who am I?

Todays topics ● Type of companies ● Taxes and socialtaxes (skatt och arbetsgivaravgift) ● VAT (moms) ● Profit

Type of companies

What options are there? ● Sole trader (Enskild näringsidkare, also known as “enskild firma”, “enmansbolag”, “enskild företag” etc) ● Limited liability company (Aktiebolag) Trading partnership (Handelsbolag) ● ● Limited partnership (Kommanditbolag) ● Economic association (Ekonomisk förening) ● Non-profit association (Ideel förening) “C-företagare” ● ● Do I need a company? (Enkelt bolag)

Before we move on - what is a Legal entity?

Good: ● Simple* ** ● Free*** Sole trader Bad: ● No limited liability (Enskild näringsidkare) ● Not fitting if a revenue of over 1 million kronor or more. Personal number is the organisation number

Good: Limited ● No personal liability* - only liable for the companies own liability capital ● You can be a single owner company Less good: (Aktiebolag) ● Costs 50 000 kronor to set up (but investments are counted) A company that has shared and is ● Requires auditor if larger owned by it’s shareholders revenue (over 3 million kronor) Both private and public versions exists

Good: Trading ● Free partnership Bad: ● Joint liability (solidaritly!) (Handelsbolag) ● Have to be at least 2 people Multiple people starting a simple company

Good: Limited No-one really knows (kinda…) ● partnership Bad: “Bolagsman” is responsible for ● (Komanditbolag) the entire company ● Have to be atleast 2 people Not quite sole trader, not quite limited liability company

Good: ● Only liable for own capital Economic Bad: association ● Have to be at least 3 people ● Will be seen on the (Ekonomisk förening) organisationsnummer as not being a company. Not a company, but works like one

Good: ● Not really liable Non-profit Bad: association ● Have to be at least 3 people Cannot really make a profit ● (Ideel förening) ● Will be seen on the organisationsnummer as not Not a company, but could work being a company.

Good: No need to register a company ● Bad: “C-företag” Only really works for services, ● very bad for selling products. ● Cannot make any pruchase on the companies expense. Invoicing thru another company Can be hard if not have a ● personnummer

● You can just do business Do I need a without a company ○ To a certain degree company? ● “Enkelt Företag” is if you and another person cooperate on something Enkelt företag

What is best? ● Sole trader / enskild näringsidkare (for getting started) ● Limited liability company / aktiebolag (if you plan on running the business for a couple of years) Trading partnership / handelsbolag ● ● Limited partnership / kommanditbolag ● Economic association / ekonomisk förening (if you cannot afford a limited liability company) Non-profit association / Ideel förening ● ● “C-företagare”

What is best? But do you really need a company? Up to 30 000 kr OK without a company, as “hobby” ● ● But needs to be reported on your tax filling

Taxes

Revenue (10 000) Salary (10 000) Taxes (3 000) Taxes “In hand” (7 000) (and social taxes, called arbetsgivaravgifter)

Revenue (10 000) Arbetsgivaravgift (2 500) Salary (7 500) Taxes Taxes (2 500) (and social taxes, called arbetsgivaravgifter) “In hand” (5 000)

Revenue (10 000) Purchase, a computer (6 000 exkl VAT) Arbetsgivaravgift (1 000) Taxes Salary (3 000) (and social taxes, called arbetsgivaravgifter) Taxes (1 000) “In hand” (2 000) Totalt: 8 000 kr

Important notes regarding taxes (and socialtaxes) ● Have to apply to register in arbetsgivarregistret (at Skatteverket or at verksamt.se) ● Is reported monthly to Skatteverket (latest the 12th each month) ● Must be reported even if no salary is payed (or risk fines)!

VAT (value added tax)

How much is VAT? ● 25 % VAT 12 % ● ● 6 %

Different amount of VAT ● 25 % - Standard VAT ● 12 % - Food, restaurant, hotell ● 6 % - Transport (person), books (0 % - momsfritt) - Officespace and ● rents

VAT ● Ingående moms (when you recieve an invoice) ● Utgående moms (when you VAT send an invoice) Utgående and ingående moms ● are deducted from each other. You only pay the difference to skatteverket

VAT is payed either: ● Yearly ● Quartely ● Montly VAT Recommended when starting: Yearly or quarterly

Important: VAT is not your money! It is the government's money, just VAT temporarily being in your bank account!

Profit (and more taxes)

Profit is taxed differently depending Sole trade / enskild firma Limited liability company / aktiebolag Profit is taxed as salary, but with “egenavgift” 2 steps: instead of “arbetsgivaravgift”. Det betyder: 1) Profit is taxed with bolagskatt (22%), 2) If you make dividens (to the sharehold(ers)) ● 31,42 % on top of the salary this is taxed as inkomst av kapital (30%). ● Taxed as salary (31,87 % in Helsingborg) (there is an exeptional rule, called 3:12 regeln ) Example: Example: Profit of 30 000 kr for a year. Taxed with Profit of 30 000 kr for a year. This gives 7 172 kr i bolagsskatt: 6 600 kr, leaving 23 400 kr in the egenavgift and 7 275 kr in taxes. Left: 15 553 company. If dividens are payed, inkomst av kapital skatt 7 020 kr. Left: 16 380 kr.

Important notes

Important details ● You can talk to skatteverket! ● Skatteverket assumes you know what you are doing! (especially that you know dates!) ● If you do it wrong, it can be fixed. ● If you are late, there will be fines (500 kr to many thousand kronors) ● You can persuade them to not fine you, if you show you have taken pre-caution to avoid the mistake. ● If you do wrong, but you payed to much tax, there is seldom a problem. ● If you do wrong, but you payed to little tax, there is a problem! ● Tax crimes are very serious crimes!

Other important things ● F - skatt ● FA - skatt ● SNI number Organisations nummer ●

Verksamt.se