How much does it cost to start your own business

How much does it cost to start your own business

Own business is a tempting alternative to full-time employment or other forms of employment. It gives independence, the ability to independently decide on the size of the working time and its place and nature. However, it also involves a lot of responsibility and significant costs. Do you want to know how to start your own business and how much will it cost you? Read the article below.


How to start your own business?

business loan

The most popular form of running your own business is self-employment. It involves running a farm by a natural person. Its assumption is not complicated. It is enough to complete only one CEIDG-1 application and then submit it to the city or commune office. The application for company registration can be completed in paper form and delivered to the appropriate facility in person or can be done online by email. Setting up a sole proprietorship is free, so you don’t have to worry that the decision to start your own business will negatively affect your home budget. However, it should be remembered that while establishing it does not require any payment, running a company generates considerable costs. When completing the application, choose the form of taxation. Each entrepreneur can choose between progressive or flat tax, a flat-rate income tax and a tax card. The decision on the choice of paying the debts with the tax office should be made individually, after considering all the options so as to choose the one that will be the most advantageous and will save money.

After completing the CEIDG-1 application, select the PKD codes that are responsible for the classification of economic entities in Poland. After accepting the application, the newly baked entrepreneur will receive NIP and REGON numbers as well as an application for choosing insurance, which must be submitted for ZUS.

This completes the most important formalities related to starting your own business.


How much does it cost to start your own business?

business loan

As mentioned earlier, the registration of a sole proprietorship is free. However, there are costs associated with starting your own business, resulting from the need to have some permits or licenses, e.g. in the case of selling alcohol or food-related activities.

Most costs, however, already arise while running a business. Depending on the industry and type of business, they may be larger or smaller. Most often they include the purchase of appropriate machines or accessories, purchase or rental of premises, payment of fixed fees, bookkeeping or company bank account. When deciding to start your own business, you should take this into account and start saving money for this purpose early enough.

Currently, young entrepreneurs can count on various concessions that reduce the costs of doing business. For the first, six-month settlement period, they are exempt from paying ZUS contributions, while for the next two years they pay them on preferential terms. These discounts are intended to facilitate the start of a new business and allow for some savings and to put aside money for the future.