More than one activity of a natural person - is it possible?
One of the simplest forms of running a business is a sole proprietorship. When starting your own business, you must make an entry in the Central Register and Information on Economic Activity using the completed CEIDG-1 form. The application states, inter alia, entrepreneur's personal data (including NIP and PESEL), company name, PKD codes or place (or places) of conducting business activity. How to extend the scope of services provided to date? More than one activity of a natural person - check if it is possible!
In the case of sole proprietorship, the entrepreneur is always one company. Having already been assigned the NIP number, it does not change when the business profile is extended. The lack of the possibility of multiple entries in the CEIDG does not exclude only one type of business activity. In order to extend the profile of economic activity, it should be done by adding additional PKD codes denoting the types of activity that one would like to extend the activity of the enterprise with. Extending the activity and changing the name of the company should be made on the CEIDG-1 update form, which must be submitted to the commune office.
Mr. Rafał runs a furniture company and such PKD appears in CEIDG. Since he has additionally started running passenger transport, more than one activity of a natural person obliges the entrepreneur to extend the PKD and update the data in CEIDG. The taxpayer is obliged to report the change within 7 days of the change:
additional terms that have been incorporated into the company name;
the address for service and the address of the permanent place of business - if available;
other contact details, if they were provided in the application for entry in CEIDG;
subject of activity - PKD codes.
More than one activity of a natural person
One natural person may have one economic activity and in this case the name is, as a rule, the name and surname of the entrepreneur. It can also be assigned only one NIP - regardless of the number entered in the register of activities. The operation of an entrepreneur under different names is covered by only one entry in the register. Giving these activities different names does not constitute separate companies of the same entrepreneur. One natural person may not have two registered business activities. However, you can run a business and carry out various types of activity within it - that is, expand your business. The terms and phrases invented by the entrepreneur can be used freely, as long as they contain his name and surname. In addition, they must identify the services being provided and must not mislead the potential customer.
Doubts as to the name of the seller, which should appear on the VAT invoice, are explained by the individual interpretation of the Director of the Tax Chamber in Warsaw of July 11, 2014 with the reference number IPPP2 / 443-433 / 14-2 / DG, according to which: "It is necessary, however, to that the information on the taxpayer provided on the invoice is consistent with the identification data provided in the identification application. Thus, the invoices issued in connection with the conducted activity should include, first of all, the name and surname of the Applicant who is a natural person. On the other hand, using interchangeably, i.e. depending on which department of the company the activity is related to, of other terms indicating the subject of the entrepreneur's activity by adding to the name and surname of the name identifying the type of activity, in accordance with the submitted application, is allowed and does not affect the tax settlement " .
More than one activity of a natural person - set up a company!
Another solution separating the new idea from the already conducted business activity is establishing a company (the simplest form is a civil partnership). Importantly, there are no restrictions here - it is possible to establish any number of companies. In this case, the invoices issued must relate to the activity in which they were performed. Therefore, it is not possible to implement a service / product as a company 1 and sell it through a company 2. In this situation, the activities performed should be distinguished.
An entrepreneur running a business in the form of a civil partnership must submit this information using the CEIDG-1 application. In the case of several companies, it is necessary to provide the data of all in which the entrepreneur participates.
When it comes to a civil law partnership, it is necessary to mention the names of all partners in the name. Information on the possession of non-civil companies, e.g. z o.o. or a joint-stock company, you do not need to report it by updating the entry in CEIDG. Entrepreneurs running a sole proprietorship and companies must pay additional ZUS contributions for participation in each of them. These are only regular health contributions, which - paid - are deductible in advance for income tax up to the limit of 7.75%. On the other hand, social contributions are payable only for one selected activity.
In summary, you can sell under two names if they contain the trader's first and last name.
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More than one activity of a natural person - sole proprietorship and partnership
The regulations do not prohibit the simultaneous conduct of sole proprietorship and joining a civil partnership, partnership or capital company. What is important, however, is the method of calculating the advance payment for income tax.
As a rule, revenues from sole proprietorship and civil law partnership constitute revenues from one source, i.e. non-agricultural economic activity. In the case of a civil law partnership, the tax should be settled according to the form of taxation adopted in sole proprietorship.
Ms. Basia runs a sole proprietorship, which is subject to flat tax, and is a new partner in a civil partnership whose partners settle accounts on general terms. How should more than one activity of a natural person be taxed?
As a rule, revenues from sole proprietorship and civil law partnerships should be taxed in the same way - with a flat tax, because Mrs Basia settles her sole proprietorship based on a flat tax.
Ms Izabela runs a sole proprietorship, which she settles on the basis of general rules. From this year, he is also a partner in a civil law partnership taxed on the basis of a lump sum on recorded income. How should more than one activity of a natural person be taxed?
In such a situation, Ms Izabela may tax the income from sole proprietorship on general terms (flat tax or tax scale). On the other hand, taxation of income obtained from a civil law partnership in the form of a flat-rate income tax will be possible only if all partners choose this form of taxation.
How to calculate the advance payment for income tax in the wFirma.pl system when more than one activity of a natural person is conducted?
Taxpayers earning income from a partnership and sole proprietorship are required to pay one advance income tax payment calculated on both activities at the same time.
In order to calculate the advance payment for income tax in the wFirma.pl system, go to the START tab »TAXES» INCOME TAX »CALCULATE TAX. In the window for calculating the advance tax, the option I RUN OTHER BUSINESS ACTIVITY is selected and the income obtained from a civil law partnership is entered. Then, in the field OTHER CONTRIBUTIONS, you need to enter the deductible health insurance contribution (7.75% of the calculation basis) that has been paid by the entrepreneur in a civil partnership.