How to choose the tax regime for a new company

When you open a company, one of the first decisions is also one of the most expensive if you make it by guesswork: which tax regime to choose. Let's take it logically.

The options, in short

• LLC — general regime. Profit tax + VAT (if you register or cross the threshold). Suitable if you have large deductible expenses, corporate clients, or plan rapid growth.
• LLC — micro-enterprise regime. Tax on sales income (not on profit). Simple, predictable. Good if your margin is high and expenses low.
• Sole proprietorship. The simplest administratively, but you're liable with your personal assets. Suitable for small, low-risk activities.

How to compare properly

Don't compare "rate A vs rate B." Compare the total amount paid to the state over a year, based on a realistic estimate of revenue and expenses. Two firms with the same turnover can pay very differently, depending on their expense structure.

Ask yourself: what percentage of revenue is real, documented expenses? If it's small (services, consulting) — income tax is often better. If it's large (trade, manufacturing) — the general regime becomes attractive.

Easy things to forget

1. VAT changes the equation when you sell to VAT-paying firms — even if you're not required yet, voluntary registration can be advantageous.
2. Employees — contributions raise the cost; some regimes treat salaries differently for deduction.
3. Changing the regime can't be done at any time — there are windows. So it's cheaper to choose well from the start.

Recommendation

Before you go to register, make a 12-month estimate (revenue, expenses, employees) and run it through all three scenarios. If you'd like, we'll do it together — it takes about as long as a coffee and saves you from a costly decision.