If you are thinking of starting and opening your own business you must take into account a number of aspects, paying special attention to the legal form of the business,which will mainly be marked by the type of business, its needs and the objectives you have set.
One of the many legal forms available is the community of goods,which stands out as the simplest legal way to start undertaking, and which also offers a number of very interesting advantages.
Here’s what a community is, how you can create it, and all its advantages and features:
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What is a community of goods?
The community of goods is the simplest legal way to start a joint business with multiple people and consists of the association of several freelancers to create the same project.
Bringing a community of goods to life requires a minimum of two commonersor partners, who intend to make a profit through a common business activity.
It has no legal personality of its own, and is therefore governed by the Commercial Code of Commerce and the Civil Code on rights and obligations.
How to create a community of goods?
To create a community of goods it will be necessary to first carry out a private contract detailing the activity of the company, as well as the contributions and percentage of participation of each of the partners.
The contract shall establish the name of the community, as well as the registered office and tax office. Clauses agreed between partners and the mechanism to be used to manage the community of goods will also be used.
In this legal form it is not necessary to make an initial investment. In fact, money or work may not be provided exclusively, but at least goods will have to be provided.
Once the contract has been completed and signed, the community of goods must be registered with the relevant body within the Administration of the Autonomous Community in which the company is located.
If only real rights or property are provided, only public deeds will have to be filed to register the community of goods.
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What is the taxation of the property community like?
Unlike a limited or public limited company, a community of goods lacksits own legal responsibility, which means that it will not haveto be taxed on corporation tax unless there are capitalist partners providing an economic investment.
The benefits will be fully shared among the common partners, and will only be taxed by the IRPF. The community must present the IRPF using models 111 and 115, while the freelancers will do so through models 130 and 131.
In addition, common partners are not required to declare VAT individually,but will submit the declaration through the property community, quarterly through Model 303 and annually with the Model 390.
Characteristics of a community of goods
A community of goods is characterized by its easy management,mainly because it has no obligation to present annual accounts in the Commercial Register, nor the Corporation Tax in the Tax Agency.
As we have already mentioned, the common partners are distributed both profits and losses, taking into account the percentage of participation of each partner, which means that the commoners do not have fixed payroll,and each month they could charge a different amount.
What are the advantages of creating a community of goods?
The greatest advantage of creating a community of goods is speed andsimplicity, both in creation and management. Moreover, it represents significant economic savings compared to other legalforms, because the costs are not so high.
Another advantage to keep in mind is that the community of goods does not require providing minimum capital,although as we have already said, some good will have to be provided.
On the other hand, it should also be noted that all common partners will take the same risk,which means that in case of losses you will not have to assume them a single person, as is the case in the case of the self-employed.
And in terms of management, the property community just needs to record sales and revenue, purchases and expenses, and investment assets in tax books.
Photo: Rawpixel – Unsplash
conclusion
As you can see, if you are thinking of starting and creating your own business with someone else, creating a community of goods is possibly the simplest legal form and that more advantages and benefits can bring you.
If you have any questions about it, at AYCE Laborytax we put at your disposal our advisors to help you in all the procedures.
