What tax benefits do I have as a start-up founder in the first year?
August 9, 2023 | 40,00 EUR | answered by Siegfried Strauss
Dear tax advisor,
I am Clara Stricker and I am planning to become self-employed and start my own business this year. I have limited experience in the area of taxes and I am wondering what tax benefits I can expect as a startup entrepreneur in the first year.
Currently, I am still working as an employee and earning a fixed salary. My plan is to start my own business in the field of event planning. I already have some potential projects in sight and I am confident that I will be successful. However, I am concerned about my financial situation in the first year as a startup entrepreneur.
Since I am not very familiar with tax matters, I would like to know what benefits I can expect as a startup entrepreneur in the first year. Are there specific tax reliefs or discounts that I can take advantage of as a founder? How can I best utilize these benefits to minimize my tax burden and stabilize my financial situation?
I would greatly appreciate your support and advice on this matter, as it is important for me as a future business owner to understand my tax obligations.
Thank you in advance for your help.
Sincerely,
Clara Stricker
Dear Mrs. Stricker,
Thank you for your question and your interest in my online consultation on starting a business. It's great to hear that you are willing to take the step into entrepreneurship and start your own company in the field of event planning. I understand that taxes can be a big challenge for many founders, especially for those who have little experience in this area. Therefore, I would like to provide you with some information on the tax benefits for start-ups in the first year.
As a start-up, you can benefit from various tax advantages and incentives that can help stabilize your financial situation in the first year. One of the most important measures is to take advantage of the so-called start-up allowance. For the first year of self-employment, this allowance is €9,168 and can be claimed as a tax-free allowance. This will reduce your tax burden and give you more financial flexibility for your business.
Furthermore, you can also take advantage of the small business regulation if your expected turnover in the first year is below the limit of €22,000. As a small business owner, you are exempt from sales tax and therefore do not need to show sales tax on your invoices. This can save you administrative work and improve your liquidity.
Additionally, you can also claim the purchase of operating equipment and work materials as business expenses to reduce your tax burden. Make sure to keep all receipts and invoices carefully to be able to prove these expenses.
To make the most of the tax benefits as a start-up, I recommend working with a tax advisor early on. An experienced advisor can help you identify all possible savings opportunities and fulfill your tax obligations. Furthermore, they can assist you in preparing tax returns and planning your financial strategy.
I hope this information is helpful to you and helps you better prepare for your self-employment. If you have any further questions or would like personal advice, I am happy to help.
Best regards,
Siegfried Strauss, Tax Advisor
