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Setting up a plain UG or GmbH gives the same advantage of not being liable with your private money, and is also a comparatively trivial process. Especially if y

Setting up a plain UG or GmbH gives the same advantage of not being liable with your private money, and is also a comparatively trivial process. Especially if you are the sole owner. Still slow compared to the US or UK, but not half a year slow Starting out a company as a UG & Co KG is a tax optimization move, not a liability issue

Aurornis 4mo ago
> Starting out a company as a UG & Co KG is a tax optimization move, not a liability issue Thanks for the clarification. However I’m still surprised that tax optimization is also considered a footnote in these conversations. In the countries I’m familiar with (mostly the US, minor second-hand experience with friends in some other countries as they started their businesses) starting a limited liability business venture that has the tax structure of a business isn’t considered a heroic effort. Starting the business is basically the least of your concerns. Almost a formality.
- mpweiher 4mo ago
  The GmbH has the tax structure of a business, as it is a business. He wanted something more special than that. Which is possible, but complicated.
- arjie 4mo ago
  When I first started my company I half assed it. The LLC was quick and the EIN took two weeks. I accidentally signed a contract with my name instead of the company and elected to be a sole proprietorship. These are all the worst ways tax-wise to do this. By Nov that year I decided to look into the tax implications and they were unpleasant so I wrote the IRS asking to be considered an S corp from the beginning of the year and they sent me a letter saying it was so. I ran payroll in Dec to catch up. When doing taxes likewise I added a cover letter explaining the mistake about which entity was to receive the money and then assigned the income to the S corp on the return and worked everything through and corrected it in the right way. The return took months to process and I had a mistake in the taxes that I was fined for a couple thousand which was reasonable but they accepted all these natural errors that I fixed up. That sequence of encounters with the US government blew my mind. The much maligned IRS was eminently reasonable.
  - jandrewrogers 4mo ago
    My interactions with the IRS have always been reasonable and pragmatic. If you make a mistake they try to be accommodating to help you fix it.
  - a34729t 4mo ago
    Every interaction Ive had with the IRS or California Franchise Tax Board has been very reasonable and efficient. Maybe the Strike Commander future was a utopia and not dystopia?

Aurornis 4mo ago

> Starting out a company as a UG & Co KG is a tax optimization move, not a liability issue Thanks for the clarification. However I’m still surprised that tax optimization is also considered a footnote in these conversations. In the countries I’m familiar with (mostly the US, minor second-hand experience with friends in some other countries as they started their businesses) starting a limited liability business venture that has the tax structure of a business isn’t considered a heroic effort. Starting the business is basically the least of your concerns. Almost a formality.

mpweiher 4mo ago
The GmbH has the tax structure of a business, as it is a business. He wanted something more special than that. Which is possible, but complicated.
arjie 4mo ago
When I first started my company I half assed it. The LLC was quick and the EIN took two weeks. I accidentally signed a contract with my name instead of the company and elected to be a sole proprietorship. These are all the worst ways tax-wise to do this. By Nov that year I decided to look into the tax implications and they were unpleasant so I wrote the IRS asking to be considered an S corp from the beginning of the year and they sent me a letter saying it was so. I ran payroll in Dec to catch up. When doing taxes likewise I added a cover letter explaining the mistake about which entity was to receive the money and then assigned the income to the S corp on the return and worked everything through and corrected it in the right way. The return took months to process and I had a mistake in the taxes that I was fined for a couple thousand which was reasonable but they accepted all these natural errors that I fixed up. That sequence of encounters with the US government blew my mind. The much maligned IRS was eminently reasonable.
- jandrewrogers 4mo ago
  My interactions with the IRS have always been reasonable and pragmatic. If you make a mistake they try to be accommodating to help you fix it.
- a34729t 4mo ago
  Every interaction Ive had with the IRS or California Franchise Tax Board has been very reasonable and efficient. Maybe the Strike Commander future was a utopia and not dystopia?