Founding a company: The path to successfully founding a company

nullWhether you are a craft business, an independent insurance broker or an online store: It all starts with a good business idea and a strategic concept. But what else is involved in setting up a business? In this article, you will find out how to carefully prepare for setting up a company and why a business plan is essential. Also important: Which legal form is the right one and what does it cost to set up a company?

From the business idea to founding a company

Develop a corporate vision

To begin with, you should formulate your business idea and record it in a written plan. You can't go into enough detail here. Gather information about your products or services, your target group and successful companies in your sector. Compare your products with those of your competitors. This will help you determine your Unique Selling Point (USP for short) - the unique selling point of your company. It will help you to set your company apart from the competition on the market and give you an advantage in the industry.

Create a business plan

A business plan is the basis of your self-employment. In it, you describe what you plan to do and how you want to achieve these goals. A business plan not only specifies your business model, but also defines strategic and business milestones. This is important in order to be able to assess how well your business idea can be implemented. Ask yourself the following questions:

• What are my goals?
• How do I reach them?
• How do I finance my company?
• How do I market my product or service?
• What revenue am I likely to generate?

You write a business plan primarily for yourself - but also for investors and potential business partners. If you want to take out a loan to set up your company, for example, your bank will take a close look at the financial calculation contained in the business plan.

Plan your finances

Get an overview of your finances. Do you need to look for investors or borrow money from the bank to set up your business? You shouldn't borrow too much, especially at the beginning, as it's difficult to estimate your start-up's revenue.

Find a company name

You know your product or service and your target group. Your company name and logo should match this. Use a company logo that is appealing and unique. In this way, you ensure recognition value. Once you have decided on a company name, check company registers in advance to see whether it is already being used by another company. If you would also like to register your own trademark , you can find out everything you need to know here. Our product "Deutsche trademark" offers you comprehensive advice on the topic as well as support with trademark registration.

Which legal form should be chosen for the company formation ?

Your business goals are defined, your USP is clear and your finances have been checked. Now it's time to choose the right legal form for your start-up. This represents the legal framework of your company. The legal form determines the liability, the position of the individual shareholders in relation to each other and which taxes apply.nullAsk yourself the following questions when choosing the legal form:

• Would you like to start up alone or in a team?
• Are you prepared to be liable with your private assets?
• Do you have sufficient funds to pay in the share capital?
• Would you like to work independently or are you open to other partners?

These basic types of entrepreneurship are possible in Germany

• Sole proprietorship
• Partnerships
• Corporations

As a sole proprietor, you are solely responsible for your company and share 100% of the profits. No fixed capital or minimum investment is required. However, you have unlimited financial liability - up to and including insolvency. Setting up as a sole trader is recommended if you want to start up on your own and have limited start-up capital. If your company is doing well, you can change your sole proprietorship to a GmbH at any time.nullYou can obtain comprehensive advice on the topic ofcompany formation of a sole proprietorship" as well as unlimited formation advice from a lawyer here.nullIf, on the other hand, you would like to start a business together with other founders, a sole proprietorship is out of the question. In Germany, there is the so-called partnership for setting up a company with 2 or more founders. No fixed capital or minimum investment is required here either. Liability is joint and several. This means that a creditor can demand payment of outstanding amounts from any partner. company formation as a partnership takes place, for example, as a partnership under civil law (GbR), a limited partnership (KG) or a general partnership (OHG).nullIf you attach great importance to separating your private and business assets, you may consider the company formation of a corporation, such as a GmbH. However, this requires share capital of at least 25,000 euros, which you must deposit prior to company formation . In return, you are not liable with your private assets. The corporation is an independent legal entity and is liable for itself - up to the amount of the deposited share capital. An interesting alternative to the GmbH is the so-called Unternehmergesellschaft (UG). This article summarizes the advantages and disadvantages of this legal form.

How do I set up a company?

You have decided on a legal form, decided on a company name and logo and drawn up a business plan. Now it's time to formally establish your company.

Obtaining permits

For certain self-employed activities, a corresponding permit or proof of professional qualification is required. This applies, for example, to self-employed persons in the skilled trades, for activities in the security and transportation industry and for the catering industry. You can usually find out exactly where you can apply for the necessary permits on the website of your federal state. The tax office, the Chamber of Industry and Commerce (IHK) and the Chamber of Skilled Crafts can also provide you with further information.

Dealing with authorities

The next step is to apply for a tax number from the relevant tax office. You then register your business with the trade office. As the founder of a corporation or partnership, you must also have your company entered in the commercial register.

Open a business account

With the help of a business account, you can separate private income and expenses from your company's operating expenses and income. This makes your bookkeeping easier. You usually need the following documents to open a business account:

• Proof of identity
• Registration with the trade office
• An extract from the commercial register
• For a GmbH: The articles of association and a list of all shareholders

Self-employment: What does it cost to set up a company?

The costs of setting up a company depend on the scope of your start-up project and the legal form of your company.

• Fees for authorities: Business registration and official permits usually cost in the 2-digit range. For example, the fee for registering a business is around 20 euros, and an entry in the commercial register costs around 150 euros. If you join the Chamber of Industry and Commerce, you will have to pay an annual fee. The amount depends on your annual turnover.
• Notary and court costs: With the company formation of a corporation incurs notary fees in addition to the share capital. These include registration in the commercial register and notarization of the articles of association. For the company formation of a GmbH, you must reckon with formation costs of at least 1,000 euros. However, complex start-ups with high share capital can also cost EUR 10,000 or more.
• Other costs: Please note that you may incur additional costs in connection with setting up a company. For example, for work equipment, office equipment or a company car. Depending on the legal form you choose, you can depreciate these costs over several years as part of depreciation.

Founding a company: The most important facts in brief

• Your business idea and a well thought-out business plan are the basis for a successful business start-up.
• The legal form of your self-employment determines the liability and taxation of your company.
• Before setting up a business, find out about the requirements, i.e. legally required permits and necessary proof of qualifications.
• You can use a business account to separate private and business assets.
• The amount of the start-up costs depends on the legal form and is usually between 50 euros (sole proprietorship) and 1,000 euros (corporation).

219.00 EURO - including advice on the start-up process

269.00 EURO - including advice on the start-up process