STATUSNO PREOBLIKOVANJE SAMOSTOJNEGA PODJETNIKA V DRUŽBO Z OMEJENO ODGOVORNOSTJO

A sole trader as a natural person is inseparably linked to the trader's business. The business is merely part of their assets intended for carrying out a profit-making activity: that is, an activity performed on the market for the purpose of generating profit. A sole trader must not decide on status transformation without prior knowledge and understanding of the transformation process; they must familiarise themselves with the legal, tax and accounting consequences of the transformation, and the procedure itself must be carried out professionally and under specific conditions, otherwise mistakes are very difficult to rectify.

Problem

A sole trader as a natural person is inseparably linked to the trader's business. The business is merely part of their assets intended for carrying out a profit-making activity: that is, an activity performed on the market for the purpose of generating profit. It is precisely high profits and rigid tax legislation, along with the associated high tax rates, that are among the main reasons why sole traders transform or merge their businesses into capital companies or limited liability companies.

For the Tax Administration of the Republic of Slovenia, the taxation of sole traders is naturally far more favourable, as they 'collect' more into the state treasury from the tax collected, whilst from capital companies considerably less (I am referring to small business entities). Given the current economic situation, many small sole traders, that is, those who do not have significant 'reserves' in capital, are struggling with major financial difficulties; they cannot settle even current expenses, let alone the high taxes demanded by the state.

Solution and Method

A sole trader must not decide on status transformation without prior knowledge and understanding of the transformation process; they must familiarise themselves with the legal, tax and accounting consequences of the transformation, and the procedure itself must be carried out professionally and under specific conditions, otherwise mistakes are very difficult to rectify.