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

Establishment of an escort service - Legal form

October 3, 2015 | 40,00 EUR | answered by Ralph J. Schnaars

I intend to establish an escort agency in the western Ruhr area.

From a tax perspective, which legal form is most advantageous if I do not primarily need to distribute profits continuously, but rather want to keep them for further projects in the company?

The capital to establish a GmbH would be available - a partner for the establishment of a GmbH & Co KG as well.

The typical business process would be as follows. A self-employed prostitute is managed by the agency for an agreed period of time - accommodation is provided, advertising is done, a chauffeur service to clients is organized, and appointment scheduling is taken care of. For this full-service package, the agency receives a fixed percentage of the lady's hourly fees.

Which legal form is recommended?

Is participating in the "Düsseldorf procedure" a good idea?

It would be good if the responding expert is knowledgeable in the industry - it would be optimal if a client relationship could result.

Ralph J. Schnaars

Dear inquirer,

Not so much for tax reasons, but rather for general business reasons, I would recommend the form of a GmbH (limited liability company) to you. A later sale of the business will be very simple and problem-free. And yet, the GmbH form is also very attractive from a tax perspective - especially for profits exceeding EUR 100,000 per year.

The extent to which the "Düsseldorf procedure" brings us benefits can only be determined after calculating the turnover of your company.

I hope I could help you with your considerations.

Kind regards,

Ralph J. Schnaars

STWB Steuerberatungsgesellschaft mbH
Direct contact +49 (0)171 525 20 42
Email mail@stwb-steuer.de