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I’m curious how European economies justify the high cost of starting a business? Maybe I don’t fully appreciate the situation. I have known some German freelan

I’m curious how European economies justify the high cost of starting a business? Maybe I don’t fully appreciate the situation. I have known some German freelancers be stuck, unable to afford to start a business. However without a business the freelancers clients will be seen as participating in disguised employment. Same goes for issues the OP cites like personal liability, etc. In the US, business licenses are relatively easily obtained to protect individuals. It would seem to benefit society to encourage new ventures. Though this is perhaps my American biases. I’m sure I’m misunderstanding something.

sbacic 6y ago
> I’m curious how European economies justify the high cost of starting a business? Short answer: they don't. Longer answer: countries in Europe don't want some guy opening a business out of his garage. They want somebody with fat stacks of cash who will be able to afford to pay high fees and taxes right from the start and then pay some more when/if his business actually makes revenue/profit. Things are slowly changing, especially in the smaller economies, but change is slow.
- brtkdotse 6y ago
  SOME countries, perhaps. Many - no. At least in the Nordics starting up an LLC equivalent costs around 100$ in registration fees and takes about an hour (plus a week or so waiting time). Of course, you’ll need the initial capital. In Sweden it’s SEK25000/$2500.
  - sbacic 6y ago
    > Of course, you’ll need the initial capital. Which is quite reasonable compared to say Germany or Switzerland (or hell, even Croatia) but still not $0 like in the USA.
chefkoch 6y ago
In Germany starting a GmbH starts at 500€, and to be a freelancer you don't need one. You just need insurance to limit you liability.
blackcats 6y ago
In the Netherlands there’s a lot of freelancers operating as a sole proprietorship. If you make a 100.000$ or more you can consider a business license.

sbacic 6y ago

> I’m curious how European economies justify the high cost of starting a business? Short answer: they don't. Longer answer: countries in Europe don't want some guy opening a business out of his garage. They want somebody with fat stacks of cash who will be able to afford to pay high fees and taxes right from the start and then pay some more when/if his business actually makes revenue/profit. Things are slowly changing, especially in the smaller economies, but change is slow.

brtkdotse 6y ago
SOME countries, perhaps. Many - no. At least in the Nordics starting up an LLC equivalent costs around 100$ in registration fees and takes about an hour (plus a week or so waiting time). Of course, you’ll need the initial capital. In Sweden it’s SEK25000/$2500.
- sbacic 6y ago
  > Of course, you’ll need the initial capital. Which is quite reasonable compared to say Germany or Switzerland (or hell, even Croatia) but still not $0 like in the USA.

chefkoch 6y ago

In Germany starting a GmbH starts at 500€, and to be a freelancer you don't need one. You just need insurance to limit you liability.

blackcats 6y ago

In the Netherlands there’s a lot of freelancers operating as a sole proprietorship. If you make a 100.000$ or more you can consider a business license.