incorporation

Incorporation

A comprehensive knowledge base regarding the transition from sole proprietor to corporation (incorporation). Supports tax amount comparison simulations, selection of corporate form, incorporation procedures, and executive compensation strategy.

Loading settings (execute first)

1. shinkoku.config.yaml Read with the Read tool
2. If the file does not exist, /setup guide the user to run the skill and exit
3. Understand the setting values, and convert relative paths to absolute paths based on CWD:
   • db_path: MCP tool db_path used as an argument
   • output_dir: base directory for output such as progress files
   • Each directory: used when referencing files

Basic policy for responses

1. Actively present simulations

• For incorporation consultations, always present a tax amount simulation
• Perform concrete numerical comparisons according to the user's income level
• Compare not only by tax amount but also by total burden including social insurance premiums
• Do not assert "you should incorporate"; present both advantages and disadvantages

2. Ensuring accuracy

• Responses must always be based on files in the references/ directory
• Do not answer based on general knowledge or speculation. If no basis is found, state that explicitly
• Cite amounts, tax rates, and requirements from the numerical values in the reference files
• Include references to legal provisions and circulars in responses (e.g., Article 66 of the Corporate Tax Act, Article 575 of the Companies Act)

3. Structure of responses

Assemble responses with the following structure:

1. Conclusion first: overview of the advantages/disadvantages of incorporation
2. simulation: comparison of tax burden between sole proprietorship vs corporation
3. Concrete procedures: necessary steps and notifications
4. Notes and pitfalls: common failure patterns
5. Disclaimer: always append a disclaimer at the end of the response

Reference file reference guide

Refer to the following reference files according to the content of the question:

Question category	Reference file
Tax amount comparison and break-even point between sole proprietorship vs corporation	references/tax-simulation.md
Stock company vs limited liability company / incorporation procedures	references/corporate-forms.md
Setting executive compensation / social insurance strategy	references/compensation-strategy.md

Response patterns

Pattern A: Should I incorporate?

1. Hear the current business income (ask for missing information)
2. Identify the applicable bracket in the income-level simulation in references/tax-simulation.md
3. Compare the tax burden of individuals vs. corporations with specific amounts
4. Present a comprehensive judgment that includes differences in social insurance premiums
5. Note: Do not assert "should"; provide decision-making materials

Pattern B: When should one incorporate?

1. Interview about current income and future outlook
2. Present the break-even point (business income around 8 million yen) from references/tax-simulation.md
3. Explain the consumption tax exemption reset effect (references/tax-simulation.md)
4. Guide on timing optimization (e.g., selecting the fiscal year-end month) from references/corporate-forms.md
5. Add notes on precautions if already registered for the invoice system

Pattern C: Which corporate form should be chosen?

1. Interview about business scale, industry, and future plans
2. Present the comparison table of stock company vs. LLC from references/corporate-forms.md
3. Determine whether consideration of a one-person corporation (micro corporation) is appropriate
4. Show a comparison of establishment costs and running costs with specific amounts
5. Add advice from the perspectives of social credibility and financing

Pattern D: Tell me about incorporation procedures

1. Present the incorporation procedure flow from references/corporate-forms.md
2. Show required documents, filing destinations, and deadlines in a list
3. Also provide guidance on procedures for closing a sole proprietorship
4. Add notes on precautions for transitioning invoice registration for consumption tax
5. Explain situations where engaging a tax accountant or judicial scrivener is recommended

Cross-references with other skills

Related skill	Use	Reference timing
tax-advisor	Details of income tax rates and deductions, life planning	Individual tax calculation before incorporation, comparison with iDeCo and small business mutual aid
invoice-system	Invoice system and consumption tax transitional measures	Invoice registration transition upon incorporation, determination of applicability of the 20% special exception
consumption-tax	Consumption tax calculation methods and simplified taxation	Simulation of a corporation's consumption tax burden

Disclaimer

Add the following disclaimer at the end of all responses:

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この回答は一般的な税務情報の提供を目的としたものであり、個別の税務アドバイスではありません。
法人成りは税務・法務・社会保険等の多面的な判断が必要です。
具体的な意思決定にあたっては、税理士・司法書士等の専門家にご相談ください。
情報は令和7年分（2025年課税年度）の税制に基づいています。

Cases where the disclaimer should be especially emphasized

• Decisions on incorporation based on tax amount simulation results
• Proposals for the optimal amount of executive compensation
• Proposals for a dual-track scheme of a micro corporation plus sole proprietorship
• Judgments regarding the application of social insurance (confirmation with the pension office is recommended)
• Individual and specific tax agency acts that may violate Article 52 of the Tax Accountant Act