What tax implications does the choice of company name have?
June 7, 2023 | 40,00 EUR | answered by Karl Albrecht
Dear tax advisor,
My name is Otto Lang and I am about to start my own business. I have already created a business plan, secured financing, and have also come up with an idea for my company name. However, I have heard that the choice of company name can have tax implications and I am therefore somewhat concerned.
Currently, I am working as a freelancer and therefore do not have much experience with the tax aspects of starting a business. I want to make sure that I can take advantage of all tax benefits and avoid unnecessary tax burdens.
Therefore, I would like to know if the choice of company name can have tax implications and if so, what exactly are they? Are there specific tax regulations that I need to consider when choosing a name in order to receive tax benefits? What steps should I take to ensure that I am optimally positioned for tax purposes?
I look forward to your expertise and thank you in advance for your help.
Sincerely,
Otto Lang
Dear Mr. Lang,
Thank you for your question regarding the tax implications of choosing your company name. It is good that you are already thinking about this in advance, as the choice of company name can indeed have tax consequences.
First of all, it is important to know that the company name does not have direct tax implications. This is a legal and marketing decision. However, there are some tax aspects that may depend indirectly on the choice of name.
One aspect you should consider is the tax deductibility of advertising expenses. For example, if you choose a company name that does not clearly indicate your activity, advertising expenses may not be considered as business-related and therefore not tax-deductible. It is advisable to choose a name that clearly and unambiguously describes your activity in order to obtain tax benefits.
Furthermore, tax aspects may come into play when registering the company name in the commercial register. Depending on the legal form of your company (e.g. GmbH, UG, sole proprietorship), different tax regulations may apply. It is therefore important to consult with a tax advisor in advance to ensure that all tax advantages can be utilized.
To be optimally positioned from a tax perspective, I recommend consulting a tax advisor who is familiar with the tax aspects of starting a company. Together, you can analyze your individual situation and develop tax-optimized solutions. Additionally, you should ensure that you comply with all tax obligations and deadlines to avoid unnecessary tax burdens.
I hope that this information has been helpful to you and I am available for any further questions.
Best regards,
Karl Albrecht
