Establishment: Which legal form is right for you?

Anyone who wants to found a company or set up their own business is faced with the first questions early on. It is best to look for a business start-up in Cologne Tax advisor as well as one Lawyer, to everyone Mistakes to avoid. However, there are a few things that you can already take into your own hands. Gathering information should be at the top of your to-do list. But which legal form is the right one for your own company anyway? Since a lot depends on it, you can find out the most important differences here!

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The most important things in brief
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• The legal form forms the framework for your own company.
• A distinction is made between sole proprietorship, partnership and corporation.
• Sole proprietorships are suitable for solo self-employed people as well as for those who act as individuals and have employees.
• Partnerships are an association of at least two people who are personally liable for entrepreneurial activities.
• Capital companies focus more on equity participation than in partnerships. There is limited liability here, which is only liable with the capital contribution.
• Which legal form is suitable should be discussed in advance with tax advisors or a team of lawyers.

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What is a legal form?

Imagine your job as a picture. Everything you do or offer is shown on it. The legal form provides the suitable frame Dar. This means that the legal form must be chosen, depending on the type of company, the number of employees you have and whether you act with shareholders or shareholders. The type of legal form is decisive right from the time of incorporation, because it influences formalities as well as the Investors' assessment and investors as well as from banks. The regulations for the respective legal forms are laid down in the BGB, the HGB and the GmbHG.

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What legal forms are there?

There are many different legal forms. As already mentioned, choosing the right one is partly determined by the “image”, i.e. your company; other conditions are up to you. In principle, the legal forms between Sole proprietorships, partnerships and corporations differentiated.

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What is the legal form for sole proprietors?

As the name suggests, a sole proprietorship is one of a natural person Self-employed activity. There are commercial as well as freelance or agricultural companies. Individual entrepreneurs can still be employers and hire other people. They also often act as solo self-employed people.

The legal forms of sole proprietors are:

• Freelancers
• small businesses
• Kaufmann or Kauffrau e.K.

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What are the legal forms of partnerships?

In contrast to sole proprietors, the partnership has a Involvement of at least two people required. They join forces to pursue a common goal. In doing so, you are personally liable.

The legal forms of partnerships are:

• Civil Law Society (GbR)
• Open trading company (OHG)
• Limited partnership (KG)

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What are the legal forms of corporations?

A corporation also brings together several people, but in contrast to a partnership, the focus here is on capital investment or participation. In doing so, the Liability limited be, so that liability is only due to equity participation.

The legal forms of a corporation are:

• ltd
• UG
• AG
• KGaA

Conclusion: Which legal form is the right one?

Each of the legal forms — from those of sole proprietorships to partnerships to those of corporations — still has different regulations. You should research exactly what these are before you make your choice and discuss with a tax advisor or with a team of lawyers. Tax advisor Martin Bleckmann will be happy to discuss exactly which legal form is right for you.

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