Natural person and juristic person How are they different? When should SMEs register their companies?

When starting a business, a common question SME entrepreneurs often wonder is, "Should I continue selling as an individual, or should I register as a company?" Many fear that being a company will be complicated and result in higher taxes. However, in reality, as your business grows, remaining as an individual might actually lead to higher taxes than you should! Today, Lamour Accounting will explain in simple terms the differences between these two structures and when you should consider switching to a legal entity.

A clear comparison: What are the differences between a natural person and a legal entity?

To illustrate this in the simplest way, let's compare the differences in three main areas:

• • 1. อัตราภาษีที่ต้องจ่าย
    • บุคคลธรรมดา: เสียภาษีแบบขั้นบันได สูงสุดถึง 35% ยิ่งรายได้เยอะ ยิ่งโดนหักภาษีหนัก
    • นิติบุคคล (SME): เสียภาษีจาก “กำไรสุทธิ” สูงสุดเพียง 20% เท่านั้น! (แถมกำไร 300,000 บาทแรก ได้รับการยกเว้นภาษีอีกด้วย)

• • 2. การหักค่าใช้จ่าย
    • Individuals: are often forced to deduct expenses using a lump-sum method (e.g., 60%), which sometimes means our actual costs are higher, putting us at a disadvantage.
    • นิติบุคคล: หักค่าใช้จ่ายได้ตามจริงทั้งหมด! (แค่ต้องมีบิลใบเสร็จที่ถูกต้อง) ทำให้คำนวณกำไร-ขาดทุนได้ตรงตามความเป็นจริง

• 3. ความน่าเชื่อถือในการทำธุรกิจ
  • Individuals: Large corporate clients are often reluctant to do business with them because of withholding tax and complicated paperwork.
  • นิติบุคคล: มีความน่าเชื่อถือสูงกว่า สามารถประมูลงานรัฐ หรือรับงานจากบริษัทมหาชนได้สบายๆ

Signs that indicate it's time to register your company!

If your business exhibits these signs, Lamour recommends preparing to register your company:

1. Income starts to reach 1.8 – 2 million baht per year: Because once your income exceeds 1.8 million, you will need to register for VAT (Value Added Tax). Managing VAT in the name of a company is much easier than managing it as an individual.
2. Business Costs Over 60%: If you buy and resell or have high production costs, becoming a legal entity allows you to deduct your actual costs from your taxes, avoiding the fixed tax rate applicable to individuals.
3. Looking to expand your business or borrow from a bank: Banks are more likely to grant loans to businesses that are legal entities and have clear financial statements than to individuals.

Taxes you need to know when registering as a company (legal entity).

Once you've transitioned to a company, your tax obligations will need to be more structured. Regular tasks that need to be handled (and are included in our monthly accounting package) include:

• Form P.P.30: Value Added Tax (for businesses registered for VAT) must be filed monthly.
• Forms P.N.D. 1, 3, 53: Withholding tax for employees and business partners.
• Social Security: Submit contributions every month.
• Closing the annual financial statements: For the purpose of filing corporate income tax (Form 50, 51).

Transform complicated tasks into simple ones with services from Lamour Accounting.

Company registration and accounting no longer need to be a headache if you have a trusted partner like Lamour Accounting Co., Ltd., which provides company registration and comprehensive accounting and tax services.

• ✅ ระบบจัดเก็บเอกสารออนไลน์ (OneDrive) หมดปัญหาเอกสารหาย
• ✅ ยื่นภาษีผ่าน e-Filing ถูกต้อง ตรงเวลา ลดความเสี่ยงโดนสรรพากรปรับ
• ✅ ให้คำปรึกษาเชิงธุรกิจ เพื่อให้คุณรู้กำไร-ขาดทุนที่แท้จริง

Are you ready to elevate your business for sustainable growth?

Consult with us for free regarding company registration and initial tax planning!

• 📞 Call: 064-893-6651
• 💬 LINE: @Lamouraccounting
• 🌐 หรือดูรายละเอียดแพ็กเกจของเราได้ที่: คลิกที่นี่