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

Change of ownership small business

April 28, 2010 | 15,00 EUR | answered by Matthias Wander

Hello dear advisors,

I hope you can answer my following questions.

Until the end of February 2010, my husband had a small business registered (cleaning services). Then we transferred the business to me, i.e. from March 2010 onwards. We use the small business regulation, meaning we do not charge VAT on our invoices.

Now my questions:

1. Do I need to transfer everything (bank account, car, phone, insurance, etc.) to my name now?

2. Since we were not aware, we opened a bank account in my name today. Will we get into trouble because it has only been done now (after almost 2 months)?

3. Are there any deadlines for this?

4. When the business transfer took place, there were still outstanding payments. These payments should theoretically also go to my husband's account, or should we have opened a new account immediately? (A change of account holder was unfortunately not possible)

5. If everything (except the bank account) continues to be in my husband's name, can I still declare the expenses (phone, car, insurance, etc.) as deductions on my income tax return?

I would appreciate a clear and understandable answer.

Best regards

Matthias Wander

Dear inquirer,

Thank you for your inquiry, which I would like to answer based on your information and in the context of your commitment in an initial consultation.

In principle, all invoices, contracts, and bank accounts should be issued in the name of the entrepreneur from the beginning, as otherwise there may be difficulties regarding the acceptance of the relevant business expenses. You can only deduct business expenses if you are the recipient of the service (contract partner). If your name is not on the invoices, the tax office may assume that you are not the contract partner and may reject your business expenses.

The open receivables will be recorded and taxed by your husband in his final balance sheet as of 28.02. The account to which these receivables will later be attributed is not relevant.

I hope I was able to assist with my explanations.

Best regards,

Wander
Tax Advisor