Setting up a company is an exciting step, but one that is associated with many tax issues. In this article, we will give you an overview of the most important tax aspects that you should consider when setting up a company in order to be optimally prepared.
Choice of legal form:
The choice of legal form for your company has significant tax consequences. The most common legal forms are sole proprietorships, partnerships (GbR, OHG, KG) and corporations (GmbH, AG). Each legal form has its own tax advantages and disadvantages, particularly with regard to income taxation and liability.
Taxes on incorporation:
When setting up a company, you need to keep an eye on various taxes:
Trade tax: Businesses must pay trade tax. The amount varies depending on the municipality.
Sales tax: You must decide whether you want to make use of the small business regulation or operate as a company subject to sales tax.
Income tax: As a sole trader and partnership, you pay income tax on your profits.
Corporation tax: Corporations pay corporation tax on their profits.
Accounting and tax returns:
Regardless of their legal form, all companies must keep proper accounts and submit regular tax returns. This includes advance VAT returns, income tax or corporation tax returns and, if applicable, trade tax returns.
Depreciation and investments:
You can benefit from tax depreciation when purchasing operating equipment. These reduce your taxable profit and therefore your tax burden. There are various depreciation methods, such as straight-line and declining-balance depreciation.
Subsidies and grants:
There are numerous funding programs and grants for start-ups that you can take advantage of. As a rule, these do not have to be repaid, but may be taxable. Find out about possible subsidies at an early stage in order to reduce the financial burden during the start-up phase.
Conclusion:
The tax aspects of setting up a company are varied and complex. Careful planning and early advice from a tax advisor can help you avoid tax pitfalls and take advantage of tax benefits right from the start. This allows you to concentrate on the essentials: building your successful company.
