What does small business mean?
that small businesses Is a legal form and is therefore not compatible with the Small business regulation to be confused, as it is regulated by the Sales Tax Act. It applies to freelancers and sole proprietors as well as for companies whose Turnover last year 22,000 euros not exceed and are expected to fall below 50,000 euros stay. These limits will However, increased to 25,000 and 100,000 euros in 2025.
In this context, you don't need sales tax to carry away. The prerequisite for a small business is the profit and turnover limits of 80,000 and 800,000 euros per year. Then it's just simple bookkeeping with the Surplus income statement (EU) necessary.
What are the legal regulations?
You report the business to Gewerbeamt on. This is no start-up capital required and registration costs between 10 and 65 euros, depending on the municipality. As You are responsible for the business person with your private assets, which is a disadvantage of this legal form. If that is not desired, you can found a UG or GmbH. However, then there is the obligation to balance sheet, P&L and to double bookkeeping, as it is then no longer a small business. A small business is possible for sole proprietors or companies under civil law (GbR).
What tax peculiarities do I have?
In addition to the sales tax that you may have to pay, you also pay with a small business Business tax, with the Allowance of 24,500 euros applies. In addition, you must Member of the IHK or HWK be. Many companies can clearly be assigned to crafts or industry. In borderline cases, you can also contact the Chamber of Industry and Commerce first. From the Employment agency Do you get a Company number, which is necessary when you Hiring employees want. Then you also have to payroll tax Pay. Do you have company vehicles, do you also have to motor vehicle tax pay.
In addition to advantages such as benefits, two possible disadvantages are that you cannot freely choose the name for your business and that you cannot claim investor funds. With regard to the Your name must be your first and last name contained.
What else do I have to consider?
As soon as your company starts with cash comes into contact, do you need a checkout. A Cash book It makes sense, but it is only mandatory if you also go to double bookkeeping are committed. In other words, you exceed turnover limits or change the legal form. In addition, you must a business account open usually and it makes sense to use software that DATEV exports for your tax office if you are not currently taking on these tasks yourself.
