Are you running a sole proprietorship and wondering whether you should upgrade to a corporate model? This is a question many sole proprietorships face as their operations expand. According to Decree 01/2021, sole proprietorships have certain legal and scale limitations, while corporations offer more advantages in business expansion and financial management.

This article will clearly analyze the limitations of the household business model and introduce technology solutions from GTG CRM to help businesses automate processes, from invoicing to marketing, for more efficient operation.

Key Limitations of Household Businesses

1. Unlimited Liability with All Assets

According to Article 79 of Decree 01/2021, business households are liable without limit using all of their assets . This means:

• All personal and household accounts are considered sources of income for the business.
• Personal assets can be affected when there are business risks.
• There is no clear distinction between personal finance and business finance.
• The legal risks are higher compared to the business model with legal personality.

2. Limitations on Scale and Development

Sole proprietorships have the following limitations:

• No legal entity status — Operating under an individual's name
• Only one household business can be established — it cannot be expanded to include multiple other household businesses.
• It is not possible to simultaneously be the owner of a private business or a member of a partnership company.
• Difficulties in raising investment capital and expanding scale.

3. Complexities in Tax and Financial Management

According to Circular 40/2021, business households have two methods for calculating taxes:

• Method of declaration : Detailed declaration of revenue and expenses is required.
• Fixed tax method : Applying a fixed tax rate for each industry.

However, managing invoices, documents, and tax declarations remains manual, time-consuming, and prone to errors.

Why Should You Switch to a Corporate Model?

Outstanding Business Benefits

• Separation of responsibilities : Businesses have independent legal status, protecting individual assets.
• Unlimited expansion : Multiple branches and representative offices can be established.
• Enhance brand reputation : Easier to collaborate with major partners and participate in bidding processes.
• Easy fundraising : Attracting investment from funds and banks.
• Professionalizing management : Applying modern technology and standardized processes.

GTG CRM Technology Solutions Support Businesses

When transitioning to a business model, you need a comprehensive management system. GTG CRM provides a powerful set of tools to automate processes and optimize business performance.

Automatic Electronic Invoice Generation

GTG CRM has built-in electronic invoicing functionality:

• Automatically generate invoices immediately after order completion.
• Integration with tax authorities : Ensuring compliance with legal regulations.
• Automatic invoice consolidation : Aggregates invoices by period and by customer.
• Electronic archiving : Quick retrieval, no worries about losing information.

Benefit:

• Save 80% of invoice processing time.
• Minimize errors caused by manual data entry.
• Ensure compliance with tax laws.

A Guide for Businesses to Digital Transform with GTG CRM

Step 1: Register for Business Conversion

• Prepare the necessary documents in accordance with legal regulations.
• Choose the appropriate business type (Limited Liability Company, Joint Stock Company, etc.)
• Complete the business registration procedures.

Step 2: Set up GTG CRM

• Import customer data from the old system.
• Configure the sales process.
• Integrating electronic invoices with the tax authorities.
• Delegate permissions to employees.

Step 3: Develop a Marketing Strategy

• Identify your target customer
• Create landing pages for each product/service.
• Setting up Google & Facebook advertising campaigns
• Monitor and optimize performance.

Step 4: Operation and Optimization

• Periodic report analysis
• Process improvement based on data.
• Train employees to use it effectively.
• Applying new features from GTG CRM

Benefits of Using GTG CRM

• Save time : Automate 70-80% of manual tasks.
• Cost reduction : Reduce advertising costs by 20-30%, save on manpower.
• Increased revenue : Better customer service, higher conversion rates.
• Effective marketing : Accurate measurement, continuous optimization.
• Professionalization : Enhancing brand image

Important Note

• Compliance with the law : Ensuring the conversion process is completed legally.
• Data backup : Store complete records and documents from the period of business operation.
• Information security : Use strong passwords and set appropriate access permissions.
• 24/7 Support : Contact the GTG CRM team for advice when needed.

Conclude

Converting from a sole proprietorship to a company is not just about changing legal documents, but also a crucial step in protecting personal assets, expanding scale, and professionalizing business operations .

With GTG CRM 's comprehensive suite of tools, you can automate everything from invoicing and customer management to marketing, helping your business operate efficiently and achieve sustainable growth.