Sole proprietorship or limited company? MSG Equipment covers choosing a business form, paperwork and taxation when opening a car workshop.
Opening a car maintenance business can be interesting and profitable, but MSG Equipment’s article reminds readers that it also brings paperwork and tax obligations.
According to the article, the two most common forms are a sole proprietorship and a limited liability company. The planned activity decides: a sole proprietorship suits a small garage where the owner does the work, while an LLC suits a multi-service centre employing staff.
A sole proprietorship is easier and cheaper to register, while an LLC is a legal entity whose liability is limited to its capital. The article also notes the importance of choosing the correct activity code at registration; specific rules depend on each country’s legislation.