How can I, as a start-up entrepreneur, minimize my tax burden?
April 17, 2024 | 40,00 EUR | answered by Karl Albrecht
Dear tax advisor,
I am Yvonne Zellmer and I am planning to start my own business in the near future. I have already gathered some information on taxes for start-ups, but I am unsure on how to effectively minimize my tax burden.
Currently, I am still employed and have a monthly gross income of 3,500 euros. I plan to start an online fashion trading company and anticipate an initial revenue of around 50,000 euros in the first year.
My main concern is that as a start-up, I may not fully utilize all tax benefits and opportunities available. I want to ensure that I keep my tax burden as low as possible to maximize my profits and successfully build my business.
Can you please provide me with specific tips and strategies on how as a start-up I can minimize my tax burden? Are there any special tax benefits or depreciation opportunities that I can take advantage of as a founder? What tax aspects should I definitely consider when establishing my business?
I thank you in advance for your support and look forward to your helpful responses.
Best regards,
Yvonne Zellmer
Dear Mrs. Zellmer,
Thank you for your inquiry and your interest in my tax consultancy for start-ups. I am pleased that you have already started exploring the topic of taxes for founders and are thinking about how to effectively minimize your tax burden. I am happy to provide you with some specific tips and strategies that can help you reduce your tax burden as a start-up entrepreneur.
First and foremost, it is important that you contact a tax advisor early on to plan and structure your tax affairs optimally. An experienced tax advisor can offer you individual and tailored solutions for your tax challenges.
As a start-up entrepreneur, you generally have the opportunity to take advantage of various tax benefits and depreciation options to minimize your tax burden. Some of the key tax benefits for founders include the so-called small business regulation according to § 19 UStG, which allows you to be exempt from VAT if your annual turnover is below 22,000 euros. The regulations for declining depreciation can also be interesting for you as a founder, as this allows you to deduct your acquisition costs for assets more quickly for tax purposes.
Furthermore, you should make sure to claim all business-related expenses and costs as tax-deductible. This includes items such as office supplies, rent for business premises, marketing costs, or trips to clients. The use of a home office or the depreciation of business-use vehicles can also have a tax-reducing effect.
When starting your online trading company, you should also pay attention to all tax aspects. This includes the choice of legal form, VAT liability, profit determination, and the management of accounting and payroll. A tax advisor can provide you with comprehensive advice and support to ensure that you meet all tax requirements and take advantage of possible tax benefits.
Finally, I would recommend regularly reviewing and adjusting your tax affairs as needed. Tax laws and regulations change regularly, so it is important to stay informed and make any necessary tax optimizations.
I hope these tips help you minimize your tax burden as a start-up entrepreneur and successfully build your business. If you have any further questions, please feel free to contact me.
Best regards,
Karl Albrecht
Tax Advisor
