My consulting revenue has surged — is it still okay to stay a sole proprietor?
As project rates rise and revenue surges, staying a sole proprietor (general taxpayer) often leaves you with an unnecessarily heavy tax burden, so it's important not to miss the right timing to incorporate. As your income scale grows, incorporating often becomes more favorable under the tax-rate structure, so we recommend running the numbers based on your revenue and profit scale before deciding, and for consulting fees from overseas clients, converting to KRW and filing them combined while also reviewing whether zero-rate VAT applies.
Income Structure Features for IT Consultants
Key Necessary Expense Items
Tax Advantages for IT Consultants
Optimizing VAT treatment for large per-project contracts
We review simplified vs. general taxpayer status against your revenue scale to adjust your VAT burden.
Currency conversion and zero-rate VAT treatment for overseas project income
We review the currency conversion and zero-rate VAT eligibility for consulting fees from overseas clients.
Reviewing incorporation timing
We compare the tax burden of a sole proprietorship against a corporation at the point your income scale grows and design the more favorable structure.
The Most Common Mistake in the Field
As project rates rise and revenue surges, many people continue to stay a sole proprietor (general taxpayer), leaving them with an unnecessarily heavy tax burden. Not missing the right timing to incorporate matters.