doing business as a corporation vs individual

[3421abc]

me and the wife (thai) have been doing business as individuals since early 2020. We are thinking about opening a corporation next year since the income has been going up steadily.

My main question is... what are the advantages of doing business as a corporation vs individual in Thailand? We didn't hit 1.8 mil in sales this year to require collection/ filling of VAT but next year for sure we will. I guess there is a certain threshold (total annual sales) that makes it more viable to trade as a business.

Could anyone share their knowledge about this issue?

[FritsSikkink]

You will be legal.

[SVBlue]

1. Tax deductible proper.

2. Pay less income tax compare to sole owner.

3. Reach out from GOV such free seminar, or benefit from DBD etc.

4. Reliability.

5. limited liability 

6. Easy access for bank loan + Lower interest rate.

7. TEC can help guaranteed for bank loan. 

 

All i can think of for now. ????

[Eric Loh]

The unlimited liability is the reason why most corporatized. As your business grow, liability increases. Also raising capital is easier when corporatized. 

[advancebooking]

In the past few yrs Ive read many different members categorically stating that they wish that they had not gone down the company route. Absolute nightmare and a few members of this forum said that they reverted back to individual situation and desolved the company. 

 

Also, if you keep your bank credits below a certain level then you can pay minimal tax. Thats why businesses keep changing banks all the time before it gets to 1.5million baht in bank credits (based on a certain amount of transactions). Your accountant will know the rules

Edited January 13, 2021 by advancebooking