Ask a tax advisor on the topic of Business start-up

Business registration, questions about the business, and much more.

January 22, 2010 | 20,00 EUR | answered by Dipl.BW/SB Ulrich Stiller

Hello,

I have 2 websites or forums and now want to make money with them (through advertising). For this purpose, I have registered a business and checked the box for a side business. The earnings will initially be around 15-50 euros per month, but of course, I aim to increase this amount. The goal is to reach higher amounts like 200-400 euros.

As a newcomer (and young person), many questions arise for me.

1. Am I allowed to have a €400 job in addition to my business? Currently, I work as a kitchen assistant and can't really live off the first low earnings (15-100 euros).

2. What kind of bookkeeping do I need to do? Is it enough if I simply write down income and expenses on a piece of paper or in a book?

3. I have never had to deal with taxes or a tax return before, as I only had a €400 job. Do I have to submit a tax return for the business or send other things to the tax office? If yes, what, where, how often, etc.? I have never dealt with such things in my young years.

4. Do I have a value-added tax obligation? Some advertising providers on the website mention that if you are subject to VAT, the tax will be paid out and you should immediately declare it.

5. Can I add the costs of the business registration and the costs for these questions directly to my expenses? After all, it is part of the business.

6. Can I deduct certain things from taxes? As mentioned above, I have never dealt with such things, but I always hear about it. For example, if the computer I work with breaks down or small office supplies like notepads and pens, etc.? Or can I at least list these items on the expenses list?

7. I have owned the domains and web space for a long time, and now I want to use them commercially for earnings. Can I still add the costs to the expenses list later, or can I only do it when the next payment is due?

8. I heard that you quickly receive mail from the tax office after registration, is there anything special to consider or any tricks or tips?

9. How much can I earn? I have indicated a side business, when do I have to register it as a full business or from how much income?

10. Are there any other things I should consider or have not yet thought of? Or are there any tips you can give me?

It is important to me that I receive the answers to the questions accurately. Answers with the note "I can't tell you exactly" are not helpful to me.

I hope someone can help me comprehensively, I am still very young and a bit scared of all the registrations and applications. I don't want to make any mistakes, but as mentioned before, I have never had to deal with the tax office or similar, so simply word

Dipl.BW/SB Ulrich Stiller

Dear inquirer,

Thank you for your inquiry, which I would like to answer based on the information you have provided and taking into account your contribution within the scope of an initial consultation as follows:

Question 1

Yes, you are allowed to do so.

Question 2

Due to the low level of your turnover, you are not required to keep accounts, so extensive bookkeeping is not necessary. You determine the profit or loss by comparing the business income with the business expenses. However, you should digitally record the documents.

Question 3

You must submit an income tax return annually. You only need to submit a trade tax return if the profit exceeds 24,500 euros. Regarding the VAT return, see the answer to Question 4.

Question 4

If you are a small business owner according to § 19 UStG, you do not have to submit a VAT return. Small business status applies whenever the total turnover in the previous year does not exceed 17,500 euros and will not exceed 50,000 euros in the current year. However, you can also opt for VAT taxation, but then you are bound to it for 5 years. If you opt for the small business owner scheme, you are not required to submit a VAT return.

Question 5

Yes.

Question 6

Everything related to your commercial activity is deductible as a business expense in principle.

Question 7

Yes.

Question 8

You will receive a questionnaire from the tax office for the registration of your commercial activity, which you must fill out point by point, preferably with a tax advisor.

Question 9

If your business is your main source of income, you should re-register it.

Question 10

I can only advise you to contact a tax advisor, as each case has its own peculiarities, making it impossible to answer this question.

I hope I was able to assist you within the scope of your contribution, bearing in mind that a comprehensive consultation for 20 euros is not allowed for a tax advisor according to the Tax Advisor Fee Regulation.

Best regards,

Ulrich Stiller
Tax Advisor