One of the most pressing questions of entrepreneurs concerns the legal way in which money from an LLC goes back or ends up in the pockets of the entrepreneur. Below we list 10 perfectly legal methods to get money out of the company and some information about the related taxes.
1. Settlement of expenses incurred for the company (0 taxes)
Organize personal and professional expenses and make a very clear separation between them. Deductible expenses refer to those expenses that can be settled on the company, practically you can withdraw from the company the value of the expenses incurred by you for this. To know which expenses you can deduct from the company, you can use the “deductible expenses” category from the tax code https://static.anaf.ro/static/10/Anaf/legislatie/Cod_fiscal_norme_11022020.htm#A25 Another method is to evaluate yourself the categories of expenses you want to deduct. If they are logical and if you can always explain to a verifier why you need to hire expense x to carry out the activity, all that remains is to consult with your accountant on the details and you can settle.
2. Withdrawal of an advance of expenses (0 taxes)
If you need to withdraw an advance, for these future expenses to be settled, you can withdraw up to 5000 euros. Do not forget that these amounts must be justified with documents and that you cannot exceed this cumulative amount. For example, if you raised an advance of 5,000 euros, you can justify 1,000 euros and the following month you can withdraw a maximum of 1,000 euros again, so as not to exceed this threshold. Practically, depending on how many withdrawals you have, you will take care that permanently you do not exceed this threshold.
3. Payment of dividends (taxes 5% and 8%)
Once every 3 months, you have the opportunity to withdraw dividends together with your associates. If you have associates, you will not only be able to collect dividends, i.e. parts of the company’s profit, but all associates will collect proportionally from the profit. When paying dividends, your accountant will calculate a tax of 5% (2022) 8% (after 2023) which you will have to pay in the month following the withdrawal of the tax. There are some other obligations that you must check with the accountant: the threshold for paying contributions (additional costs), the single income statement and the preparation of an interim balance sheet, if applicable.
4. Payment of royalties (10% tax)
If you have a registered trademark in your name or if you produce content for which you want to keep the copyright, you can draw up a copyright contract with your company and you can be paid based on it. The copyright contract has lower taxes than a salary (10%) and it is also reported in the single declaration.
5. Payment of salaries (taxes 45%)
The associate and/or administrator has the right to work in the company and collect salaries and other salary rights (meal vouchers, mobility allowance, etc.) just like any other person. Of course, this is the most “expensive” form of remuneration for an associate/administrator.
6. Payment of a per diem/travel allowance (0 taxes)
The administrator can receive a per diem/travel allowance for the trips he makes in the interest of the company. There is a legal basis that establishes the maximum level of the per diem when it is granted for trips in Romania and abroad, you can consult it here: https://lege5.ro/Gratuit/geydsnrsgi/diurna-hotarare-518-1995?dp=gizdmmbqgazde
7. Purchases of personal goods from the associate/administrator (taxes 0)
The associate and/or the administrator can sell to the company goods necessary for the company’s activity: a computer, a tablet, a telephone or a car, all of which can become the elements of a sale-purchase contract. Of course, as for all other categories, a fair price will be used and the purchased goods will actually be used in the activity.