What tax obligations do I have as a startup founder?
July 18, 2024 | 40,00 EUR | answered by Martina Köhler
Dear tax consultant,
I am about to start my own business and I am unsure about my tax obligations as a startup entrepreneur. I have heard that there are some tax aspects to consider that affect me as a business owner. As background information, I am planning to start a small business in the IT services sector and I am aware that I need to familiarize myself with tax regulations.
Currently, I am not sure which taxes I need to pay as a startup entrepreneur and how to correctly pay them. I am worried that I could make tax errors that could lead to financial problems or legal consequences. I also wonder if there are certain tax benefits or funding opportunities that I can take advantage of as a startup entrepreneur.
Therefore, my question to you is: What specific tax obligations do I need to consider as a startup entrepreneur? Which taxes do I need to pay and how can I calculate and pay them correctly? Are there any special tax regulations or funding programs that I can benefit from as a startup entrepreneur? I would greatly appreciate a detailed explanation and specific recommendations.
Thank you in advance for your assistance.
Sincerely,
Lorenzo Brandes
Dear Mr. Brandes,
I am pleased that you have asked me for help with your tax questions regarding your start-up in the IT services sector. It is important to address your tax obligations as an entrepreneur early on in order to avoid potential errors and take advantage of tax benefits.
As a start-up, you have various tax obligations to consider. Firstly, you must pay income tax on your profits. Your company's earnings are offset against your expenses and operating costs to determine the taxable profit. Income tax is then calculated based on this profit and paid to the tax office.
In addition to income tax, as an entrepreneur you must also pay value-added tax if you provide taxable services. VAT is calculated on your sales and must be regularly paid to the tax office. It is important to calculate and pay VAT correctly to avoid any tax issues.
As a start-up, you may also be eligible for certain tax benefits or funding programs. For example, there is the opportunity to take advantage of the "founder's grant" which provides financial support for starting your business. Additionally, you can benefit from various tax depreciation options to claim your operating costs for tax purposes.
To fulfill your tax obligations as a start-up and benefit from tax advantages, I recommend contacting a tax advisor early on. An experienced tax advisor can help you organize your tax affairs, make the right tax decisions, and utilize potential tax savings.
I hope this information is helpful to you and supports you in your start-up. If you have any further questions, please feel free to contact me.
Best regards,
Martina Köhler
