Establishing a limited liability company (LLC) provides entrepreneurs with opportunities for business growth, but it also comes with certain obligations, especially in accounting. Compliance with accounting rules is crucial not only for the proper functioning of the company but also for adhering to legal regulations and avoiding potential penalties. What accounting obligations must an LLC fulfill?
Accounting management
Every LLC is required to maintain double-entry bookkeeping, regardless of the company’s size or turnover. This includes recording all financial transactions in accounting books according to accounting law and applying accounting principles and standards.
Preparation of financial statements
At the end of the fiscal year (usually the calendar year), an LLC must prepare financial statements, which include:
- Balance sheet
- Profit and loss statement
- Notes to the financial statements
These statements must then be submitted to the Register of Financial Statements and the Financial Administration.
Filing a tax return
Every LLC is required to file a corporate income tax return and pay the tax due by March 31 of the following year. Companies can request a three-month extension, or six months if they have foreign income.
Paying income tax advances
If the company’s tax obligation exceeds the legally defined limit, the LLC must pay quarterly or monthly advances on income tax.
VAT obligations
If the company exceeds a turnover of €49,790 over the past 12 consecutive months, it must register as a VAT payer.
VAT payers must regularly submit VAT returns and control statements (monthly or quarterly).
When conducting international transactions, a summary report may be required.
Payroll and contributions
If an LLC employs workers, it must:
- Register as an employer with health and social insurance agencies.
- Maintain payroll records, pay wages, and remit taxes and contributions.
- Regularly submit reports on assessment bases and wage deductions.
Archiving accounting documents
Accounting documents such as invoices, bank statements, and financial statements must be retained for at least 10 years, with some documents requiring longer retention.
Communication with the Financial Administration
Every LLC must communicate electronically with the Financial Administration of Slovakia through its online portal, where all tax returns and reports are submitted.