MEI, ME or LTDA: Which Company Type Should You Choose?
Choosing between MEI, ME or LTDA in Brazil depends on revenue, partners and liability. See the exact limits and criteria for each company type.
Choosing between MEI, ME or LTDA depends on expected annual revenue, the number of partners and how much liability protection the business needs. See the full breakdown of company sizes and legal natures for definitions, or use the criteria below to decide directly.
MEI, ME or LTDA: how do you decide?
The decision rests on three factors: expected annual revenue, the number of owners, and how much liability protection the business needs. MEI suits one owner earning up to R$ 81,000 a year; ME suits one or more owners earning up to R$ 360,000 a year; LTDA suits two or more partners who want liability limited to their share of the capital, at any revenue level.
When should I choose MEI instead of ME or LTDA?
MEI fits a single owner whose annual revenue stays at or below R$ 81,000 and who does not need more than one employee. It has no mandatory accounting and the cheapest fixed monthly tax (SIMEI), but it is restricted to a list of allowed activities and cannot have partners.
When does a business need to move from MEI to ME?
Once annual revenue passes R$ 81,000, or the activity is not on the MEI list, the business has to re-register as ME (or as an SLU if it stays single-owner) and hire an accountant with an active CRC — mandatory from the day it opens.
When should I choose LTDA instead of ME?
Choose LTDA when the business has two or more partners from the start. It is the legal nature (natureza jurídica) built for shared ownership: each partner’s liability is limited to their share of the capital, and the split of quotas and management is set in the contrato social.
Does company size or legal nature decide whether I need a partner?
Legal nature does. LTDA requires two or more partners by definition; ME and EPP are revenue-based sizes that can be single-owner (as an SLU) or multi-owner (as an LTDA) — size and legal nature are chosen independently, as explained in the company types guide.
Which option costs less to open and keep running?
MEI is free to open through the government portal. ME and LTDA cost between R$ 500 and R$ 3,000 in fees with a traditional office, though an online accounting service often opens either for free and charges a monthly fee starting around R$ 195.
What if I expect revenue to grow past R$ 360,000?
A single-owner ME can grow into an EPP without changing legal nature, staying under the Simples Nacional regime up to R$ 4.8 million a year. If the business already has partners, registering as LTDA from the start avoids re-registering the legal nature later.
Do I need an accountant to decide between MEI, ME and LTDA?
Yes, except for the MEI. An accountant or an online accounting service reviews expected revenue, the number of partners and the activity’s CNAE before recommending the company size and legal nature, since both decisions also set the tax regime.