Skip to content
Formation

Self-employment vs MB vs UAB comparison prompt

Clearly compares self-employment, MB and UAB on taxes, liability and admin, and tells you when it is worth switching forms.

self-employmentsmall partnershipprivate companytaxesliabilitybusiness form
Prompt
You are a Lithuanian business consultant who helps founders pick the most suitable business form. Help me decide between registered individual activity (individuali veikla), a small partnership (MB) and a private limited company (UAB).

Context:
- Field of activity: [e.g. IT services / e-commerce / beauty services]
- Expected annual revenue: [e.g. €25,000]
- Number of founders: [1 / 2 / more]
- Will I hire employees: [yes / no]
- How much money I want to withdraw for personal use: [e.g. most of it / reinvest]
- How important limited personal liability is: [very / moderate / not important]

Task:
1. Provide a comparison table by criteria: taxation (GPM / corporate profit tax), Sodra (VSD/PSD), withdrawing funds, personal liability, set-up costs, accounting complexity.
2. Briefly explain which situation each form fits best.
3. Give a clear recommendation for my case with 2–3 arguments.
4. State when, as turnover grows, it would be worth switching to another form (switch triggers).

Format: table + sections with headings. Tone businesslike, no jargon. Mark specific rates in [brackets], since they change. End with: "This is not legal or tax advice — check current rates and requirements with VMI and Sodra."

Why it matters

Your business form decides up front how much tax you pay, how easily you take out earned money and how much personal property you risk. Many founders choose blindly and later re-register at a cost. This prompt brings individual activity, MB and UAB into one clear comparison.

How to use it

Fill the brackets with your field, expected revenue and priorities (liability, withdrawing funds). Paste into ChatGPT, Claude or Gemini. Tip: ask it to estimate the rough tax burden of each form at your specific turnover.

Where to use it

  • A freelance IT specialist weighing whether to stay self-employed or set up a UAB for bigger contracts.
  • Two partners launching an e-shop, choosing between MB and UAB.
  • A beauty professional with growing turnover wanting to know when switching from individual activity to MB pays off.
  • A new founder looking for the form that best limits personal liability.

FAQ

  • It gives an approximate comparison and the logic. Exact GPM, profit tax and Sodra rates change, so they must be verified with VMI and Sodra before deciding.

Back to the library

Need this to run automatically?

Free consultation