What tax aspects need to be considered when founding a GmbH?
August 24, 2023 | 40,00 EUR | answered by Otto König
Dear lawyer specializing in corporate law,
My name is Gabriele Otten and I am planning to establish a GmbH. However, I am unsure about which tax aspects I should definitely consider.
Regarding the current situation: I already have a business idea that I would like to put into action. After careful consideration, I have decided to establish a GmbH, as this legal form provides me with the necessary limitation of liability and makes my company appear more reputable.
The current state of affairs is that I have already intensively dealt with the establishment of a GmbH and am familiar with the legal requirements. However, I still lack the necessary knowledge in the area of tax aspects.
My concerns are that I do not want to experience any nasty surprises when it comes to taxes. I want to ensure that I fulfill all tax obligations correctly and avoid making any mistakes that could prove costly later on.
Therefore, my question to you is: What tax aspects should be considered when establishing a GmbH? Are there specific taxes that apply to a GmbH, and what tax advantages does this legal form offer? What types of taxes must I, as the owner of a GmbH, consider and how can I utilize tax optimization opportunities to minimize my tax burden?
I look forward to your detailed advice and thank you in advance for your support.
Sincerely,
Gabriele Otten
Dear Mrs. Otten,
Thank you for your inquiry regarding the tax aspects of founding a GmbH. It is understandable that you may feel uncertain in this area and do not want to experience any unpleasant surprises. It is important to thoroughly inform yourself in advance about the tax obligations and options to avoid any unwelcome consequences later on.
There are various tax aspects to consider when founding a GmbH. First and foremost, it is important to know that a GmbH is taxed as a separate legal entity. This means that the GmbH itself pays taxes, and not you as the business owner personally. The main taxes that apply to a GmbH are the corporate tax and trade tax.
The corporate tax rate in Germany is currently 15% of the taxable income of a GmbH. Additionally, the trade tax is levied, the amount of which varies depending on the location of the GmbH. It is important to calculate and pay these taxes in a timely manner to avoid any financial problems.
As the owner of a GmbH, you also need to keep an eye on value added tax. Depending on the nature of your business, you must calculate the VAT correctly and remit it to the tax office. It is also important to comply with all legal requirements to avoid any legal consequences.
However, there are also tax advantages to founding a GmbH. For example, you can deduct certain expenses for tax purposes and thereby minimize your tax burden. There are also various opportunities for tax optimization, such as choosing the right location for your GmbH or utilizing tax incentives.
I recommend that you seek comprehensive advice from a tax advisor in advance to clarify all tax aspects of your planned GmbH formation. Only in this way can you ensure that you fulfill all tax obligations correctly and take advantage of possible tax optimization opportunities.
I hope this information is helpful to you and I am available to assist with any further questions.
Sincerely,
Otto König, Attorney specializing in corporate law
