1. Self-employed individuals do not enjoy preferential policies, have no investment risks and do not need accounting. A limited company needs to prepare accounts and file taxes every month, and can enjoy preferential tax policies.

2. Individual industrial and commercial households cannot apply for an increase in the tax rate of 17%, but can only apply for small-scale taxpayers (3%). A limited company can apply for a 17% general taxpayer VAT invoice.

3. Different legal responsibilities

4. Different tax payment and tax calculation methods

5. Individual industrial and commercial households do not need company articles of association when registering, while limited companies do not need articles of association. Articles of association are required when registering a liability company.

If a self-employed business owner loses money in business, you must be responsible for all debts. If a limited liability company loses money in business, it can apply to the court for bankruptcy protection. For example, when you register the company, the registered capital is 500,000 yuan, and you owe others 2 million yuan, you only need to pay back 500,000 yuan, and it is legally binding. Protect, there is nothing others can do to you. For self-employed businesses, the tax authorities generally estimate your sales based on the location, size, number of employees, sales of goods, etc., and then assign taxes. Regardless of the monthly income, whether or not you have income, you must pay tax based on the fixed tax amount. A limited liability company usually requires the company to have sound accounting and keep accounts. Taxes are also paid based on the income declared by the company itself. If there is income, it will be paid, and if there is no income, it will not be paid. Individual industrial and commercial households or sole proprietorships only pay personal income tax on their business income; business income of a limited liability company is subject to both corporate income tax and personal income tax. Taxation for individual industrial and commercial households or sole proprietorships is generally levied at a fixed rate; for taxation of limited liability companies, business transactions are taxed based on invoices, and business income is generally levied through verification or audit.

How to register as a self-employed business owner:

To register as an individual business owner, you must apply for registration to the registration authority where your business place is located. Applicants should submit a registration application, proof of identity and proof of business location. To apply for registration as an individual industrial and commercial household, the applicant or his or her authorized agent may register directly with the registration authority where the business place is located.

Legal basis:

Article 3 of the "Company Law"

A company is an enterprise legal person, has independent legal person property, and enjoys legal person property rights. The entirety of the company's property is liable for the company's debts. The shareholders of a limited liability company shall be liable to the company to the extent of their subscribed capital contribution; the shareholders of a joint stock company shall be liable to the company to the extent of the shares they subscribe for.