The exploitation of intellectual activities by Legal Entities is authorized by the Supreme Court

Recognizing the validity of the use of a legal entity for the exploitation of intellectual activities, when judging the declaratory action of constitutionality no. 66, on December 18, 2020, the Supreme Federal Court, guardian court of the Federal Constitution, conferred, above all, in the constitutionalist concept Portuguese Canotilho, maximum effectiveness to the constitutional principle of free enterprise. Such positioning must be respected in the judicial and administrative spheres.
In the judgment in question, it was declared the constitutionality of Article 129 of Law No. 11.196/2005, the provision of which establishes that the provision of intellectual services, including those of a scientific, artistic or cultural nature, on a very personal or not basis, is subject only to the legislation applicable to legal entities.

With this, artists, athletes, journalists and a range of liberal professionals can manage and explore their activities through legal entities, without being penalized, especially with regard to the fiscal and tax perspective.

It is to say: it is up to the citizen to choose how to structure and manage his business and/or activity, that is, whether he will do so through the individual or legal entity, and the State cannot interfere in this choice by applying sanctions, under penalty of frank violation of individual freedom and free enterprise.