Question 1

What business structures are available for content creators in India?

Accepted Answer

Four main options: **Individual/Freelancer** (no registration, zero cost), **Sole Proprietorship** (simple registration, Rs 7,500), **LLP** (limited liability, Rs 20,000), and **Private Limited Company** (best for funding, Rs 40,000). Each has different tax rates, compliance requirements, and liability protection.

Question 2

When should I consider forming a Private Limited Company?

Accepted Answer

Consider Pvt Ltd when: annual income exceeds **Rs 1 crore**, you need **VC/angel funding**, want to issue ESOPs to team, scaling to 10+ employees, or planning international expansion. Pvt Ltd has 25% tax rate (lowest) but highest compliance cost (Rs 80K+/year).

Question 3

What is the tax difference between structures?

Accepted Answer

**Individual/Proprietorship**: Slab rates (5-30% based on income). **LLP**: Flat 30% + 4% cess on profits. **Pvt Ltd**: Flat 25% + 4% cess. For income above Rs 50 lakh, Pvt Ltd often has lower effective tax. Individuals can use Section 44ADA for 50% deemed expenses.

Question 4

What is limited liability and why does it matter?

Accepted Answer

Limited liability (LLP/Pvt Ltd) means your **personal assets are protected** if the business fails or faces lawsuits. In Individual/Proprietorship, creditors can claim your personal property. If you do high-risk activities (events, product sales), limited liability is crucial.

Question 5

Can I upgrade from Individual to Pvt Ltd later?

Accepted Answer

Yes! The typical path is: Individual -> Proprietorship -> LLP/Pvt Ltd. However, upgrading requires transferring assets, closing old registration, and new setup costs. **Start small and upgrade** when income justifies the compliance burden. This calculator shows when to upgrade.

Question 6

Which structure is best for raising funding?

Accepted Answer

**Private Limited Company** is strongly preferred by VCs and angel investors as they can buy equity shares. LLP allows profit-sharing but is less attractive for institutional funding. Individual/Proprietorship cannot raise external funding - only personal/family loans.

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