Choosing a legal entity

When planning to become self-employed, choosing the right legal entity is one of the most important decisions to make. That is because the legal entity will make or break a company's success. Each variant has its advantages, but also its drawbacks. For that reason it is imperative to conduct comprehensive research and make a well-informed decision.

The chosen legal entity also largely dictates the taxation of a company and its organizing bodies. Individual persons and partnerships are assessed via the income tax, whereas corporations must pay corporate taxes. In the latter case, losses can only be offset against profit generated in previous or future years, trade tax has to be paid as soon as the very first euro is earned, and the compiling of balance sheets is mandatory.

Apart from tax-related issues, there are numerous aspects that need to be taken into account: decisions regarding liability, the distribution of profit and losses, as well as the different management modalities must also factor into the choice of a suitable legal entity.

Together with you, we will discuss the plans you have for your business and identify the legal entities that are appropriate for your particular endeavor. Subsequently, we will make a recommendation as to which legal entity we believe best meets your needs. We will gladly help you put your chosen legal entity into practice: upon request, we can take charge of setting up the entire legal entity - from helping you drawing up the articles of association to carrying out a legally valid registration.