Hey tribe! Is forming up a legal entity like(say s...
# tribev
victorious-judge-28935
05/21/2022, 3:25 PMHey tribe! Is forming up a legal entity like(say something like a LLP) a good option when working as a contractor if it saves income taxes rather than working as a individual contractor? Are there any other angles to look that one should consider before going for such a setup? Would love inputs if someone has done it before here!
victorious-judge-28935
05/21/2022, 3:32 PMTo give some more info, this is considering the fact that 44ada limits are crossed!
c
clever-advantage-29037
05/21/2022, 3:57 PM#finance?
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worried-librarian-12856
05/21/2022, 5:55 PMThere would not be any tax benefits. Instead, there will be more compliances cost. Creating an LLP will make sense if you plan to hire devs.
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wonderful-tailor-61689
05/25/2022, 5:53 PMShould look at setting up a LLP or Pvt Ltd Co. Notable differences:
Tax rate for LLP/Proprietor is roughly 33% and Pvt Ltd is at 25%.
Pvt Ltd will have restrictions/implications on money withdrawn by founder when compared to LLP.
Happy to explain it better offline!!