No Complication for the Taxation Return Preparation Watson Service

In the context of his business creation, the entrepreneur is faced with several choices, including that relating to the tax system for profits. As we will see, the choice between the IR and the IS is correlated with the choice of legal status, each with a basic tax regime and option options that are unique to them. The forecast and the support of a professional are necessary to choose effectively.

Choice of IR or IS tax regime

There are two ways of taxing the possible profits for a company: the IR or the IS . When starting a business, the entrepreneur must choose between one of these two tax systems (provided that the chosen status leaves him the choice). For the proper Taxation Return Preparation Watson this happens to be effective.

IR taxation results in direct taxation of profits on behalf of the entrepreneur or on behalf of each partner in the event of a partnership.

•        On the other hand, the choice of the IS makes the imposition of profits directly on the company. The entrepreneur or the partners are personally taxed on the remuneration and dividends they receive

Choice of tax system: the IR (income tax)

•   When the business is subject to income tax, the taxation applies directly to the entrepreneur and / or the partners. The company is not subject to any tax burden. Profits earned through the company are taxed in the category of the activity carried out: BIC, BNC or agricultural profits.

•   The choice of Taxation Return Preparation Watson at the IR allows, for reduced activities, to take advantage of ultra-simplified tax regimes: micro-BIC, micro-BNC or auto-entrepreneur status.

Choice of the tax system: the IS (corporation tax)

When the company is subject to the IS, the taxation of the profits is applied directly to the name of the company. The IS is calculated at the normal rate but a reduced rate of 15% on the first 38,120 euros of profits is possible under conditions. In this configuration, the entrepreneur or the partners are personally liable to the IR only on the remunerations and dividends they receive.