Factors such as the responsibility you want to assume, the taxes you will have to pay and the deductions you can apply will all play a role. We will tell you all the details.
SMEs and self-employed workers in Spain: What is the situation?
According to data from the National Institute of Statistics (INE), 384,390 companies began their economic activity in 2017. Furthermore, the Ministry of Economy reported that in January 2018, 1,535,472 self-employed workers were registered with Social Security compared to 1,307,776 SMEs.
As for the distribution of the number of companies by size, it is as follows:
53.9% self-employed.
39.9% micro-enterprises (1 to 9 employees).
5.2% small businesses (10 to 49 employees).
0.8% medium-sized companies (50 to 249 employees).
0.2% large companies (250 employees or more).
These data show how micro-enterprises and self-employed workers are an essential part of the business fabric in Spain.
Do you know the legal differences between small business email list self-employed workers and SMEs?
One of the consequences of starting a business is the risk of generating debts with suppliers, for example. Although we all hope to be able to pay them on time, it is better to prepare for cases of lack of liquidity.
In this sense, the legal personality of the company is decisive:
Most SMEs establish their legal personality under the formula of a Limited Liability Company (SL). This means that the entrepreneur is liable to third parties with the company's assets, so in the event of a debt, he or she can protect his or her assets.
Self-employed persons , on the other hand, have unlimited liability, so they will have to respond to their debts with their own assets, except in the case of the ERL (entrepreneur with limited liability) who may protect their habitual residence from debts.