Want to start your own business in Poland?
Make sure you have everything under control!
Here are 3 major beginner mistakes to avoid.
Watch until the end so you don't repeat them.
Here is a quick text version:
Mistake No. 1Misconceptions about accountants
An accountant does not choose the best business structure or taxation method for you.
Moreover, they are not obligated to be tax optimization experts.
What does an accountant actually do?
- bookkeeping;
- preparing income and expense statements;
- state reporting and tax filing.
Mistake No. 2A careless approach to choosing a business structure
Running your own business is not just about growth and new opportunities.
It also means taxes, expenses, and liability.
Even before registering a company, an entrepreneur must research the taxes and fees associated with each available business structure.
It is also necessary to assess risks and growth opportunities in relation to your specific industry.
Two business structures are most common among foreigners in Poland:
- JDG - sole proprietorship (jednoosobowa działalność gospodarcza)
- Sp. z o.o. - Limited Liability Company
Unfortunately, only a small fraction of immigrants in Poland are eligible to register a JDG.
Which doesn't mean you should just blindly register a Sp. z o.o.
First, you should calculate all possible options and consult with experts.
By the way, our blog has plenty of useful information to help you choose the right business structure and taxation:
JDG - For whom? Who can register as a sole proprietor in Poland?
JDG - Part 2: All about taxation and accounting.
Sp. z o.o. in Poland: all about taxation and accounting
Mistake No. 3Company fund management
In the case of a corporate entity, earned money belongs to the company, and the company can use it only to maintain operations and growth.
Founders can only pay themselves a salary or dividends, which are also subject to taxation.
Remember! Freely spending company funds for personal use is a criminal offense.
Pay attention! Running your own business requires total immersion in all company processes.
Entrepreneur = liability
Measure twice, cut once, as they say.
And this applies first and foremost to choosing your business structure, taxes, and finances.
If you need professional assistance with choosing a business structure and taxation, book a consultation with us using the form below or by phone.
You can find more about our services for entrepreneurs here.
