Which official procedures do I need to complete when starting a business?
September 8, 2022 | 40,00 EUR | answered by Isabel Müller
Dear tax advisor,
I intend to start my own business as a freelance graphic designer and therefore face the challenge of starting a new business. I have no experience in this area so far and am unsure about which official steps I need to take to implement my plans legally and tax correctly.
Currently, I am still employed in a fixed job, but I would like to become self-employed because I am convinced that my skills and expertise in graphic design will enable a successful freelance career. I have already created a business plan and acquired my first clients, but I am uncertain about the specific steps I need to take to officially start my own business.
My main concerns are that without the necessary official approvals, I might face legal consequences, and I want to make sure that I complete all necessary steps correctly and promptly. Additionally, I am unsure if I need to consider any tax aspects when starting my business and what taxes I may be liable for.
Therefore, my specific question to you is: What official steps do I need to take as a freelance graphic designer when starting a business, and what tax aspects should I consider? I would greatly appreciate a detailed explanation of the necessary steps and possible solutions to successfully implement my self-employment.
Thank you in advance for your support.
Sincerely,
Elvira Schulz
Dear Mrs. Schulz,
Thank you for your inquiry regarding starting a business as a freelance graphic designer. It is understandable that you may feel unsure when it comes to the legal and tax aspects of self-employment. I will now explain in detail the administrative steps you need to take and the tax aspects you should consider.
First and foremost, it is important that you register as a freelance graphic designer with the tax office. To do this, you must fill out the "Questionnaire for Tax Registration" form and submit it to the relevant tax office. In this questionnaire, you provide information about your self-employment, your income and expenses, and your tax situation.
Additionally, you should also register with the trade office in your city. Even if you are working as a freelance graphic designer, in most cases you still need to register with the trade office. There, you will receive a trade registration, which is necessary for your self-employment.
Furthermore, I recommend looking into professional liability insurance. As a graphic designer, you have a certain responsibility towards your clients, and professional liability insurance can protect you from financial risks.
Regarding tax aspects, familiarize yourself with the different types of taxes that are relevant for self-employed individuals. These include sales tax, income tax, and potentially trade tax. It is important that you take your tax obligations seriously and submit your tax returns regularly.
I also advise you to establish a proper accounting system to document your income and expenses. Proper bookkeeping is not only legally required but also important for your business planning and tax returns.
Lastly, it is advisable to consult with a tax advisor early on to professionally manage your tax matters and take advantage of possible tax benefits.
I hope this information is helpful to you and wish you success in your entrepreneurial journey as a freelance graphic designer. If you have any further questions, I am happy to assist.
Best regards,
Isabel Müller, Tax Advisor
