{"id":6452,"date":"2024-12-04T10:58:33","date_gmt":"2024-12-04T09:58:33","guid":{"rendered":"https:\/\/www.benefitax.de\/2024\/12\/04\/choice-of-legal-form\/"},"modified":"2025-04-16T09:34:59","modified_gmt":"2025-04-16T07:34:59","slug":"legal-form-selection","status":"publish","type":"post","link":"https:\/\/www.benefitax.de\/en\/legal-form-selection\/","title":{"rendered":"Legal Form Selection"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"6452\" class=\"elementor elementor-6452 elementor-5312\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-5e794bb elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"5e794bb\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-6fff371\" data-id=\"6fff371\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-d6ae14c elementor-widget elementor-widget-text-editor\" data-id=\"d6ae14c\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<div class=\"flex_column av_one_full flex_column_div av-zero-column-padding first avia-builder-el-0 el_before_av_two_third avia-builder-el-first \"><section class=\"av_textblock_section \"><div class=\"avia_textblock av_inherit_color \"><p>The choice of legal form is much more than a formality when setting up a company. There are many legal and tax opportunities, but also risks to assess. We advise you on choosing the right legal form.<\/p><\/div><\/section><\/div><div class=\"flex_column av_two_third flex_column_div av-zero-column-padding first avia-builder-el-2 el_after_av_one_full el_before_av_one_third column-top-margin\"><div class=\"av-special-heading av-special-heading-h2 blockquote modern-quote avia-builder-el-3 el_before_av_textblock avia-builder-el-first \"><h4 class=\"av-special-heading-tag \">Factors that are decisive in the legal form selection<\/h4><\/div><section class=\"av_textblock_section \"><div class=\"avia_textblock \"><p>The form and manner in which a company is founded in Germany should be carefully considered, as many factors depend on it, which in the worst case can lead to costly mistakes that can no longer be reversed. The following factors in particular must be taken into account:<\/p><ul><li>Minimum capital<\/li><li>Foundation costs<\/li><li>Current taxation and on cessation of business\/sale<\/li><li>Liability for obligations by the company and the shareholders<\/li><li>Ongoing administrative costs (office rent and equipment, personnel costs, bookkeeping, annual financial statements, tax returns, notarizations, commercial register costs)<\/li><li>Business aspects, e.g. the scope and duration of activities in Germany<\/li><li>Legal form: Selection of legal form and taxation<\/li><\/ul><\/div><\/section><\/div><div class=\"flex_column av_one_third flex_column_div av-zero-column-padding avia-builder-el-5 el_after_av_two_third el_before_av_one_full column-top-margin\"><section class=\"av_textblock_section \"><div class=\"avia_textblock \"><div id=\"attachment_6791\" class=\"wp-caption aligncenter\"><p><img fetchpriority=\"high\" decoding=\"async\" class=\"size-medium wp-image-6791\" src=\"https:\/\/benefitax.de\/wp-content\/uploads\/2016\/07\/Rechtsform-Wahl-der-Gesellschaft-und-der-Besteuerung-430x304.jpg\" sizes=\"(max-width: 430px) 100vw, 430px\" srcset=\"https:\/\/www.benefitax.de\/wp-content\/uploads\/2016\/07\/Rechtsform-Wahl-der-Gesellschaft-und-der-Besteuerung-430x304.jpg 430w, https:\/\/www.benefitax.de\/wp-content\/uploads\/2016\/07\/Rechtsform-Wahl-der-Gesellschaft-und-der-Besteuerung-260x185.jpg 260w, https:\/\/www.benefitax.de\/wp-content\/uploads\/2016\/07\/Rechtsform-Wahl-der-Gesellschaft-und-der-Besteuerung-450x318.jpg 450w, https:\/\/www.benefitax.de\/wp-content\/uploads\/2016\/07\/Rechtsform-Wahl-der-Gesellschaft-und-der-Besteuerung-250x177.jpg 250w, https:\/\/www.benefitax.de\/wp-content\/uploads\/2016\/07\/Rechtsform-Wahl-der-Gesellschaft-und-der-Besteuerung-150x106.jpg 150w, https:\/\/www.benefitax.de\/wp-content\/uploads\/2016\/07\/Rechtsform-Wahl-der-Gesellschaft-und-der-Besteuerung.jpg 640w\" alt=\"Legal form: choice of company and taxation\" width=\"430\" height=\"304\" aria-describedby=\"caption-attachment-6791\" \/><\/p><\/div><\/div><\/section><\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-fa41f48 elementor-align-center elementor-widget elementor-widget-button\" data-id=\"fa41f48\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<div class=\"elementor-button-wrapper\">\n\t\t\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-sm\" href=\"https:\/\/www.benefitax.de\/en\/contact\/\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t\t\t\t<span class=\"elementor-button-text\">Contact us<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-4b13d06 elementor-widget elementor-widget-text-editor\" data-id=\"4b13d06\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<div class=\"av-special-heading av-special-heading-h2 blockquote modern-quote avia-builder-el-9 el_before_av_textblock avia-builder-el-first \"><h4 class=\"av-special-heading-tag \">Sensible scope for structuring the choice of legal form<\/h4><\/div><section class=\"av_textblock_section \"><div class=\"avia_textblock \"><h4>How many owners should the company to be founded have?<\/h4><p>There are many options here. If only one person is to be the owner, for example, a sole proprietorship, a one-person GmbH &amp; Co. KG or a corporation can be considered.<\/p><h4>If several people are to be partners, a civil law partnership (GbR), commercial partnerships or corporations are possible options.<\/h4><p>A civil law partnership does not operate a commercial business. For tax purposes, its result is allocated to the partners according to their shareholding. The biggest problem is that each partner is fully liable for all liabilities of the GbR with all of their private assets, i.e. not just up to the amount of their contribution or only proportionately with their share quota. No written partnership agreement is required to establish a GbR. A verbal agreement or mere joint action may be sufficient. You should therefore check exactly who you are entering into a partnership with. In addition, the GbR is only represented externally by all partners jointly, which is very cumbersome in practice.<\/p><h4>OHG, KG, GmbH &amp; Co. KG &#8211; it is good to take a close look at everything.<\/h4><p>If a GbR operates a commercial business, it is a commercial partnership and must be entered in the commercial register. Depending on its structure, an OHG (all partners are fully liable), as a KG (some partners, known as limited partners, are only liable up to the amount of the contribution made) or as a hybrid form with a corporation (e.g. GmbH &amp; Co. KG). In the case of mixed forms, all fully liable partners are corporations. This ensures that no private individual is liable as a shareholder with their entire private assets. Nevertheless, the company is regarded as a partnership for tax purposes, for example. For the purposes of accounting, valuation and disclosure, however, the regulations for corporations apply to the greatest possible extent.<\/p><h4>UG haftungsbeschr\u00e4nkt &#8211; why it is not recommended!<\/h4><p>The UG haftungsbeschr\u00e4nkt, the GmbH, the AG and the S.E. The UG is not recommended because its reputation is so poor due to its low equity capital and many bankruptcies that only a few business partners are interested in doing business with it. Due to the many formal requirements and high minimum capital requirements, the AG and SE are only interesting for companies that plan frequent changes of shareholders, want to operate in many countries with branches, refinance themselves on the capital market or have their shares listed on a stock exchange. They are therefore hardly an option for normal investors. The most popular legal form is therefore the GmbH (limited liability company).<\/p><\/div><\/section><div class=\"av-special-heading av-special-heading-h2 blockquote modern-quote avia-builder-el-11 el_after_av_textblock el_before_av_textblock \"><h4 class=\"av-special-heading-tag \">The limited liability company<\/h4><\/div><section class=\"av_textblock_section \"><div class=\"avia_textblock \"><p>GmbHs can be founded by one or more persons. They must subscribe a minimum share capital of \u20ac25,000, at least half of which must be paid in immediately at the beginning. In the event of problems, the GmbH is only liable with its assets. The managing directors of the GmbH are only liable in exceptional cases (e.g. delaying insolvency, deliberately causing damage). The majority of German SMEs operate in the legal form of a GmbH. This is why it enjoys a very good reputation in business transactions.<\/p><div><a href=\"https:\/\/www.benefitax.de\/en\/branch-office-vs-company\/\" target=\"_blank\" rel=\"noopener\">GmbH or branch office<\/a> &#8211; which is recommended for you?<\/div><\/div><\/section>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>The choice of legal form is much more than a formality when setting up a company. There are many legal and tax opportunities, but also risks to assess. We advise you on choosing the right legal form. Factors that are decisive in the legal form selection The form and manner in which a company is [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[20],"tags":[],"class_list":["post-6452","post","type-post","status-publish","format-standard","hentry","category-wiki"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Legal Form Selection - Steuerberatung | Wirtschaftspr\u00fcfung<\/title>\n<meta name=\"description\" content=\"The selection of legal form. One of the most difficult decisions when setting up a company. 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