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Legal form and types of taxes

September 29, 2010 | 25,00 EUR | answered by Steuerbera Georg Stahn

Dear Sir or Madam,

we (2 people) would like to start a business renting out model apartments. The goal is to rent out (commercially usable) apartments/single-family houses and then sublet them.

1. Question: Which legal form should be chosen.

Since there are two of us, a GbR or oHG must be founded (GmbH is not an option due to the required capital).

- Are both legal forms subject to trade tax?
- Are there turnover/profit limits at which a GbR becomes an oHG (possibly limits for small/commercial businesses)?
- Is the founding of an oHG necessarily associated with notary costs?

2. Question: What taxes will be applicable?

- Income tax, of course!
- Trade tax???
- VAT?? Renting is generally VAT exempt and it can be opted for VAT?!?
- Amusement tax (in the Düsseldorf/Ruhr area)

3. Question: What taxes do the tenants have to consider?

- Trade tax, income tax
- VAT????
- Amusement tax?? (Is it possible that this is to be paid by both the landlord and the tenant?)
- Are all taxes of the tenants covered by the so-called Düsseldorf procedure?

4. Question: Which of the above-mentioned taxes must be paid in advance and when?

5. Question: Does it make a difference whether one rents apartments or commercially usable single-family houses for the project?

Thank you in advance for your efforts!

Sincerely,

Steuerbera Georg Stahn

Good day,

if the two shareholders have to be liable with their private assets, the GbR would be appropriate.
Advantage: no notary and registration costs at the local court.
An oral agreement would be sufficient.
Otherwise, I would recommend the UG to you.
The share capital would be determined at the beginning of the company.
This could mean lower notary and registration costs.
In terms of taxes, there would be corporate tax, trade tax, and possibly VAT, since you can also opt for VAT for individual commercial rentals.
If you are liable for VAT (in contrast to the small business regulation = annual turnover up to €17,500.00)
you must submit a monthly advance VAT return at the beginning of the activity.
The quarterly advance payments for corporate tax and trade tax would be determined according to the registration form for corporations by the respective tax office. Possibly also with €0.00.
The entertainment tax is paid by the respective operator.

I hope I have answered your questions sufficiently and I am available at any time for further information.

Best regards,

Georg Stahn