LEGAL FORM OF BUSINESS ORGANIZATION - A METHOD OF FISCAL OPTIMIZATION

Abstract

A fiscal optimization method of companies is rendered by their ability to choose among the various methods tolegally organize performance set out by the Romanian legislation. In this respect, a taxpayer may choose to organizetheir activities in their capacity as self-employed persons, sole proprietorships, family owned companies, free lancers,beneficiaries of copyright revenues, limited liability companies, small enterprises, joint stock companies. When ataxpayer may chose the most favorable variant to their legal status from among the ones provided by the legislation,the aim of this research paper is to show the fiscal impact generated by a natural person’s choices to raise incomesfrom activities performed as an employee, as an authorized natural person or in a trading company, namely a smallenterprise. The outcome emphasizes the fact that from the perspective of the net income raised by a natural person,their most favorable business organization form is the choice to act as a small enterprise.

Keywords

• Fiscal optimization
• fiscal cost
• income of natural person
• small enterprise
• authorized natural person