Essential for small companies and homeowners
Small companies mutual Aid is a retirement plan that allows self-employed individuals and small business owners to receive mutual aid based on the amount they have saved up to that point, if they terminate the policy due to retirement or business termination.
By taking out a subscription, you can not only receive severance pay, but also deduct the full amount of the premium paid, and benefit from a credit exclusively reserved for subscribers.
What is Small companies Mutual Aid?
In this article, we will explain in detail the plan, advantages and disadvantages of small business mutual aid, from the enrollment method to the termination method!
Small business mutual aid says, "Give the executive a pension!" A retirement benefit plan provided by the Organization for Small and Medium Enterprises and Regional Innovation.
Is self-help dangerous for small businesses?
There are also voices saying that even if you pay a premium, you may not receive the self-help money when the insurance is cancelled, or that it may be dangerous. I know I'm worried, but the risk of bankruptcy is virtually non-existent.
If you're a start-up entrepreneur, venture capitalist, or small business owner, you probably can't set up a severance plan on your own.
The Benefits of Small Companies Mutual Aid
Next, we'll talk about the benefits of joining Small Business Mutual Aid - there are six benefits of Small companies Mutual Aid!
→ Up to 120% of the premium is refundable.
→ Premium tax can be saved.
→ The tax burden will be significantly reduced.
→ A reasonable amount of money can be saved.
→ Different credit systems with commissions can be used.
There are many unexpected benefits, so let's look at each one. Up to 120% of the premium will be refunded. The main attraction of mutual aid for small businesses is the equivalent amount of up to 120%, depending on the period for which the premium was paid at the time of cancellation.
The tax burden will be considerably reduced.
Mutual aid for small businesses must pay tax on the receipt of mutual aid money (cancellation allowance) at the time of cancellation. However, if you are self-employed, the self-help money you receive will be "retirement income," so the tax burden will be much lower than "business income."
Since the entire amount of the small companies mutual aid premium is an expense (self-employment tax deduction), it is possible to save taxes on the amount paid alone. In short: "By continuously saving, taxes will be cheaper.
You can save a reasonable amount
Self-help for small businesses pays between ¥1,000 and ¥70,000 per month (in units of ¥500), so you can save a reasonable amount. "Contractors' Loan Scheme" with low interest rates for small business mutual aid, and you can borrow mutual aid funds up to the amount you have saved.
Soon after you start your business, you can set aside a certain amount each month, even if you have no money. You can increase the premium if you can afford it, or reduce it if you think it is high. There are different low-interest loan schemes available.
You can leave your assets to your spouse
Small business mutual aid has the advantage of leaving assets to common law partners.
Common law partners are those who are not married in the family registry, including spouses, descendants and grandparents.
Initially, a suicide note is required, drawn up in accordance with the procedure set out in the Civil Code, but mutual aid between small businesses allows assets to be left to the common law partners without a suicide note.
In this case, this mutual aid between small businesses is often used as a retirement benefit system. In addition, many sole proprietors actively use small business self-help because they are unable to pay retirement benefits.