Hello dear friends…
In our article today, especially Google Adsense etc. We will examine our topic, How to set up a sole proprietorship, which is the most frequently asked question by those who want to earn income.
As you know, it is possible to earn income from YouTube, blogger, other websites, etc., mainly through Adsense ads, affiliate marketing, etc.
In fact, the income from advertising fees has a very serious place around the world. Well, like everything else, doesn’t advertising earnings have a price?
Of course there is! You will pay taxes. You will complete your paperwork. Everything should be according to the rules, right?
In general, people who aim to establish a company and are compelled to do so, usually choose to establish a Private Company.
The reasons why it is so preferred to establish a sole proprietorship;
• Much less costly,
•Easy to set up the company,
• Likewise, closing the company is easy.
Topics in it;
Who Should Prefer Sole Proprietorship?
What are the Income Tax Rates by Business Volume?
At What Ages Are Taxes Not Payable, Are Young People Tax-Exempt?
What are the Documents and Documents Required for the Establishment of a Sole Proprietorship?
What is the Average Financial Expenses of Sole Proprietorships?
Who Should Prefer Sole Proprietorship?
When the sole proprietorship grows and as a result, when the earnings increase, the amount of tax it pays will also increase, and in this case, the earnings cannot be added directly to the capital of the enterprise, since it has to pay very high taxes….
For this reason, those who want to establish a sole proprietorship should be people with low business volume and low income.
You can examine the size of your business volume as follows;
What are the Income Tax Rates by Business Volume?
According to the tax rate table below;
If your monthly financial gain is 24,000 Turkish Liras, 15% of this amount must be paid as tax.
If your earnings are 40,000 Turkish Liras, you have to pay 3,600 Turkish Liras for 24,000 Turkish Liras of this amount and 20% of the other 16.000 Turkish Liras as tax to the government.
As this rate increases, the tax rate also increases.
Income tax rates;
-Because other types of companies are subject to corporate tax, you pay 22% of your income as tax to the state, regardless of the profit rate. So the tax rate is always 22%.
Therefore, if your annual financial income is over 49.000 Turkish Liras, you can turn to other types of companies instead of sole proprietorships.
At What Ages Are Taxes Not Payable? _ Are Young People Tax-Exempt?
“Young company owners between the ages of 18_29 are exempt from tax if their annual income is up to 70,000 Turkish Liras”!
What are the Documents and Documents Required for the Establishment of a Sole Proprietorship?
An application form that you can get online or from the tax office.
• Passport picture
•Two copies of ID cards
•Two residence certificates
• Lease contract or title deed
•Two and one certified statement of signature
What are the Costs Required to Establish a Sole Proprietorship?
After preparing the documents and documents required to establish your sole proprietorship, you need to start the establishment of the company….
You can go to the tax office for these transactions, or you can handle your business via the e-government website.
“You can get your work done by giving a power of attorney to a financial advisor in order to handle the installation procedures easily”.
Costs Required for Company Establishment;
•Notary Public Accountant’s Power of Attorney= 148 Turkish Liras
• Notary Public Signature Statement = 100 Turkish Liras
•Tax Office Contract Stamp Duty= 52 Turkish Liras
“Total cost during the establishment of a sole proprietorship is approximately 550-700 Turkish Liras”.
What is the Average Financial Expenses of a Sole Proprietorship?
After establishing your sole proprietorship, you have certain financial expenses that you will pay continuously.
Your required payments during the period your company is active are listed below;
• You have to pay your Bağ-Kur premium and if you employ people, you have to pay the insurance premiums of your work on a monthly basis.
• Your withholding declaration and temporary tax declaration every 3 months, and monthly VAT declaration expenses are incurred.
•You have invoice, e-invoice, waybill and expense receipt expenses.
• If you have a workplace and you are on rent, 25% of the rent you pay is withholding tax. This fee has to be paid as a lump sum every 3 months. [ If you own the title deed of your workplace or if you are using a virtual office, then you do not need to pay withholding fee ]!
Dear readers, as the magic fan team, we have answered questions such as how to set up a sole proprietorship.
Do not forget to share your questions with us in the comments section.