It Is One of the most frequent questions when it comes to embarking, but the answer varies greatly as it is subject to a number of factors that we detail below:

• ONLY Or ASSOCIATE: If You are going to carry out an economic or professional activity in a habitual, personal and self-employed way, in which the only worker involved you are going to be you would have to become autonomous and in this way constituted as an individual entrepreneur you will be obligated to liquidate the Income Tax of the Natural Persons (INCOME Taxes).  If you are going to be more than one then you would have to constitute a company, the Limited Company (SL) is the most common legal form but it is not the one, there S. A, S.L., S. Collective, S…. The company will have its own legal personality different from that of the members and as such shall be taxed by the Corporate Tax.
• COSTS: While The procedures of discharge in self-employed are simple, fast and practically without cost because it does not require prior process of constitution, the bureaucracy to create a company, SL, SA or Cooperative is much more complex. This goes through notarial procedures such as the registration of the company in the Mercantile Register, the drafting of the Social Statutes or the signature of the public deed of incorporation.
• NEW SELF-EMPLOYED FEE BONUSES: This is an advantage because it allows you to initially pay a very small monthly fee of 50 euros.
• RESPONSIBILITY: The self-employed person responds with all his personal patrimony whereas if we speak of Limited Company only would be answered with the contributed capital.

We Have to weigh very seriously the pros and cons depending on all the characteristics of our business and our personal situation to decide for one or the other. In The following link you can expand all this information: http://portal.circe.es/es-ES/emprendedor/Paginas/Emprendedor.aspx