EOOD or ET freelance

Anastasija_gust Contributor

Member since 11 December 2022

Anastasija_gustContributor11 December 2022 12:30:03

109

Do you know what is cheaper to choose for a online freelancer EOOD or ET?

Vasilev Contributor

Member since 22 July 2020

VasilevContributor11 December 2022 13:39:18

136

Hello, and welcome to Bulgaria.

The dilema between ET and EOOD is verybserious and I hope you didn't got the advice from a friend or some accountant?

These days I've heard that some accountants advice people to register ET, which os quite disturbing.

Remember just one - ET is a person, bur EOOD means Еднолично дружество с ограничена отговорност, e.g. sole owned company with limited liability. There is separate liability between your property and the property of the EOOD. With ET you are liable with your and 1/2 of your spouce's property.

Also - very high social security insurance thresholds.

Also - high taxes, because working inline doesn't gives you the opportunity to apply for patent tax ( for example artisans and retail e.g. )

Some cons about creating a company is the more expensive fees for establishment and liquidation (ET can be terminated very easy)

As a lawyer I insist every time for comany formations, because of all the above-mentioned circumstances.