When it’s Right to Register Small Business as Company -TechPally speaks

Before registering your business, be careful, plan carefully and do your research

Does a business have to be registered at all and if so, which one?

In the beginning, plan what you want to do and business to register.

You should invest quality time here and can even talk to an expert on the phone.

Our team of management at Techpally can also assist you in the planning and implementation of your business start-up and the detailed implementation strategy together with you.

Do you even have to register a business trade?

Anyone who has checked carefully beforehand may turn out to be a freelancer and save a lot.

No trade tax, no pension fund! Here a simple registration takes place via the tax office.

Even if only two or more people want to form a group, it is not necessary to register anything at all, because the activity is neither long-term nor intended to generate profit.

When starting a business, you should also pay attention to the right business!

A “photo worker” quickly identifies himself as a photographer when registering a business, ends up in the Chamber of Crafts, pays minimum contributions to the pension fund and, of course, contributions to the Chamber of Industry and Commerce (although these are minimal compared to the pension contributions).

The same applies to all other professions: First, check carefully and talk to a specialist.

In addition, some trades are subject to conditions, such as the insurance trade or the security trade, i.e. professions in which there are always many “specialists”.

You need to be careful with your job description for the business registration.

Many founders have the tendency to want to register as many activities as possible (“for later”).

For this reason, you should only do this after giving it much thought, otherwise, you’ll tie yourself to a lot of unnecessary costs that you will not get rid of again easily.

Choose the right type of company!

There are different forms of business that hardly anyone has ever heard of or of which nobody really knows what it is and what potential they hold.

Here you should really take a closer look or rather contact an expert, for whom it often only takes minutes and saves days of research.

As a rule, the LC is actually one of the ‘worst’ types of company, especially if you want to be taken seriously by others and actually have no risks that you could not insure cheaply.

Many of my customers also have no money but can raise the share capital for the LLC even with state-supported bank loans.

The LC only costs a little less when registering and is subsequently far inferior to the sole proprietorship (which is even cheaper), as a tax advisor is often needed, which every sole proprietor likes to do.

Unfortunately, it would go beyond any scope here to even begin to compare the various forms.

You don’t have to ask a lawyer at great expense for this, a start-up consultant or municipal start-up advice would certainly be good contacts here.

When deciding on the legal form, founders, unfortunately, seem to me to come out with the wrong legal form, despite the sometimes much time invested. It doesn’t have to be.

Maybe you just need to start small

Starting a full-time business is often not advisable and even counterproductive.

Those who start full self-employment right at the beginning (or at least state their main occupation when registering a business) without their business already running often have to live with unnecessarily high health insurance contributions or pay minimum amounts into the pension insurance, which have already ruined many founders.

Even those who have no other job can set up part-time stuff! When registering your business, you should already think about whether you should put all you have in the business or not.

Most successful start-ups need a lot of lead time, which can also be carried out alongside the previous job.

 

Nevertheless, a registration often makes sense here in order to be able to estimate the associated costs.

During this preparation time, you can slowly prepare for the development of the company and still work on the business idea.

You can slowly test whether the market is generating enough sales and whether the high expectations can be met at all.

During this time, founders can even use a start-up advisor like me for a total of 10 full days as part of the 100% funded start-up advice.

Many founders even dream of being self-employed as the ultimate goal of self-actualization.

But to be able to get most of your wants from a part-time job with probably an activity of fewer than 20 hours a week, or even be able to be financially successful, that takes a lot.

Often, you will need a build-up phase for such an idea in which you work more than 10 hours per day.

For many self-employed people, 15 hours per day is even a reality.

A reality that some would like to run away from (because of the long working hours), while others cannot imagine a different life (because work is then no longer work).

Conclusion

Starting a business can be the way to a self-actualized and fulfilling working life.

Anyone who plans properly before founding a company has the best prerequisites for this.

As a self-employed person, working hours and lifetime can be the same. At least that’s how it is with me.

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