Comparison of work types
Which type of work is best for you?
A detailed comparison of full-time employment, sole trader (živnosť) and limited liability company (s.r.o.)
Comparison table
| Accounting | — |
|---|---|
| Setup | — |
| Taxes | 19%€43,983.3225% |
| Tax-free allowance | €5,966.73 / year |
| Contributions | SP – 9.4%ZP – 5% |
| Other | holidays, sick leave, pension savings |
Advantages
| |
Disadvantages
| |
AdvantagesDisadvantages
FTE
- regular income
- financial and non-financial benefits
- easier to get a loan
- lower pay
- fixed working hours
- notice period
Sole trader
- fast and cheap setup process
- option to use flat-rate expenses
- exemption from social contributions during the 1st year
- unlimited liability
- health and social contributions depend on income level
- less credible image (may look like a small business to partners)
Ltd. (s.r.o.)
- limited liability
- better, more credible image (looks like a larger, more serious business to partners and potential employees)
- flat income tax regardless of earnings
- longer and more expensive setup, including drafting founding documents
- more demanding and expensive administration (mandatory double-entry bookkeeping), €50–70/month
- more complicated closing process