community of property
is a type of society that is created from a private contract between two or more people when they share ownership of a good or a right. This proindiviso must be part of the economic activity they carry out.
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What is a community of goods?
A community of goods is a simple way to create a partnership between two or more freelancers,since all you have to do is sign a private contract.
In this document, the partners indicate the contributions they make and the percentages of each member, as well as the losses and gains that are obtained.
Of course, it is necessary that a public deed be made when there is real estate or real rights.
The community of property does not have its own legal personality. In commercial matters it is governed by the Commercial Code. In matters of rights and obligations, it does so by the Civil Code.
Nor is a minimum capital required for its constitution. In fact, as a community member you can contribute a good, an economic sum or, simply, the work you do.
As for taxation, it should be noted that this type of company is not taxed on the income it obtains,but that this obligation is attributed to the community members.
It is the partners who are obliged to present the IRPF or the Income Tax of non-Residents.
With the Tax Reform of Law 27/2014,of November 27, which modified the Corporation
some confusion has been created around the community of goods.
Since January 1, 2016, Civil Societies are obliged to file Corporation Tax. Communities of property, on the other hand, remain exempt.
Characteristics of the community of goods
Among the main characteristics of the community of goods stands out its easy management,since they are not obliged to present the annual accounts in the Mercantile Registry,nor the corporate tax in the Treasury.
The community members do not have a payroll, but the benefits and losses are distributed equitably,and that is why they are taxed.
Of course, society shares the tax obligations of other types of companies. It has to settle the VAT and the IRPF in case of rent and that of the withholdings of the human team.
On the other hand, it should be noted that profits and losses are distributed equally according to the percentage held by each community member.
All partners are personally responsible for the company, since the company does not have its own legal personality.
Advantages of the community of goods
One of the main advantages of the community of goods is its fast, simple and easy constitution. In addition, the procedures are very economical and the costs are minimal.
Nor does it require you to provide a minimum capital for its constitution, although the contract does have to detail the contribution made by each of the partners.
And the other great advantage is that, at the tax level, as a partner you only pay for the benefits you get.
All community members assume the same risk; if the company has losses, you have the obligation to take care of them in a personal capacity.
The same goes for debts; if the company goes into debt and cannot face its creditors, as a commoner you will have to respond on a personal level as do the rest of the partners.
How a community of goods is constituted
This type of company is one of the simplest and most economical to constitute.
1st ⇒ Private contract
The first thing you have to do is a private contract between the members who are part of the company.
It is recommended that the constitution of the Community is also done in a public deed, when real estate or rights are provided.
2nd ⇒ Presentation of the private contract in the Tax Agency
The contract must be submitted to the Tax Agency so that the administration issues a CIF of the company. It is the number that identifies it for tax purposes and the difference of the partners, since the commoners must all be autonomous.
Community members who are not registered in the RETA (Special Regime for Self-Employed Workers) must manage their compulsory registration as self-employed through Social Security.
If workers are hired for the community, they must also be registered in the general regime. Finally, you have to request the guestbook.
community of goods
is a very attractive option for the common development of a business project or the management of certain assets or rights.
If you want to constitute a community of goods with other partners, the
business advisors of AYCE Laborytax
are close to you to solve your doubts and take care of all the processing. Leave it in your hands!