Before you start trading, you need to register with the tax authorities to let them know that you are trading.
If you decide to engage in business as a self-employed individual, you and the business are the same person in the eyes of the law. The invoices issued by the business will contain your NIE number and you will be personally responsible for the debts of the business.
Compliance obligations with the tax authorities are very similar whether you are self-employed or trade through a company.
Setting up a company in Spain can be a lengthy and costly process. Companies also have additional compliance obligations with company’s house and need to maintain full accounting records.
You and the company will be separate entities in the eyes of the law. However, it is important to realize that as the administrator of a company, you will bear many responsibilities that should not be underestimated.