4 ms·

No we don't. UG is still a GmbH bureaucratic monster which a bit less start capital. You still need to follow all taxation rules like GmbH, which costs you few

No we don't. UG is still a GmbH bureaucratic monster which a bit less start capital. You still need to follow all taxation rules like GmbH, which costs you few more thousands per year (Bilanzeirung, Steuerberater, Abschluss, ...) just to be legaly compliant. American LLC taxation is as simple as or even simpler than Anlage EÜR. And you don't need a tax advisor to do it.

victorbjorklund 4mo ago
That’s what they said? That UG solves the issue of having to have a start capital.
- miroljub 4mo ago
  No, they are trying to sell UG as an equivalent to LLC, which it is clearly not.
jijijijij 4mo ago
> which a bit less start capital. You may consider a capital stock of "at least 1€" even significantly less than 25k€. Not sure you are arguing in good faith.
- miroljub 4mo ago
  Start capital is not the only capital you need. UG forces you to pay 3-4.000€ per year on tax compliance. LLC costs 200-300$. > Not sure you are arguing in good faith. You are the one completely ignoring the running costs of UG (the same or bigger than GmbH) just to make UG look better than it really is. Now, please tell who is not arguing in good faith?
  - jijijijij 4mo ago
    > UG forces you to pay 3-4.000€ per year on tax compliance. Even in if that was true, the 25k€ difference remains (since the tax overhead is identical). Hardly what people would consider "a bit". Let's say the start capital is 3k€ for the UG and respectively 28k€ for the GmbH. That's almost a magnitude difference. And usually taxes become a challenge only when there is anything to tax or book. Are you "forced" to have a Steuerberater without revenue? I am not even defending the situation. Just calling out your characterization.
    - miroljub 4mo ago
      > And usually taxes become a challenge only when there is anything to tax or book. Not in Germany. Having a GmbH or UG is enough. > Are you "forced" to have a Steuerberater without revenue? Yes, and that costs quite a bit. I was arguing that the cost of running a “cheap” UG is closer to the cost of running GmbH than running a LLC. And these 25k, although a big burden, are not costs or fees. Once paid they are part of company balance which you can use to pay company expenses. The real costs are running costs, and those are very close for UG and GmbH.
      - jijijijij 4mo ago
        > I was arguing that the cost of running a “cheap” UG is closer to the cost of running GmbH than running a LLC. Then maybe you should have said that instead of talking about start capital... The mere difference between UG and GmbH is the start capital, so what's your expectation?
        miroljub 4mo ago
        > Then maybe you should have said that instead of talking about start capital... The mere difference between UG and GmbH is the start capital, so what's your expectation? People were selling us UG as an LLC equivalent. I was just pointing out it's not. There's no LLC or Ltd. equivalent in Germany.

victorbjorklund 4mo ago

That’s what they said? That UG solves the issue of having to have a start capital.

miroljub 4mo ago
No, they are trying to sell UG as an equivalent to LLC, which it is clearly not.

jijijijij 4mo ago

> which a bit less start capital. You may consider a capital stock of "at least 1€" even significantly less than 25k€. Not sure you are arguing in good faith.

miroljub 4mo ago
Start capital is not the only capital you need. UG forces you to pay 3-4.000€ per year on tax compliance. LLC costs 200-300$. > Not sure you are arguing in good faith. You are the one completely ignoring the running costs of UG (the same or bigger than GmbH) just to make UG look better than it really is. Now, please tell who is not arguing in good faith?
- jijijijij 4mo ago
  > UG forces you to pay 3-4.000€ per year on tax compliance. Even in if that was true, the 25k€ difference remains (since the tax overhead is identical). Hardly what people would consider "a bit". Let's say the start capital is 3k€ for the UG and respectively 28k€ for the GmbH. That's almost a magnitude difference. And usually taxes become a challenge only when there is anything to tax or book. Are you "forced" to have a Steuerberater without revenue? I am not even defending the situation. Just calling out your characterization.
  - miroljub 4mo ago
    > And usually taxes become a challenge only when there is anything to tax or book. Not in Germany. Having a GmbH or UG is enough. > Are you "forced" to have a Steuerberater without revenue? Yes, and that costs quite a bit. I was arguing that the cost of running a “cheap” UG is closer to the cost of running GmbH than running a LLC. And these 25k, although a big burden, are not costs or fees. Once paid they are part of company balance which you can use to pay company expenses. The real costs are running costs, and those are very close for UG and GmbH.
    - jijijijij 4mo ago
      > I was arguing that the cost of running a “cheap” UG is closer to the cost of running GmbH than running a LLC. Then maybe you should have said that instead of talking about start capital... The mere difference between UG and GmbH is the start capital, so what's your expectation?
      - miroljub 4mo ago
        > Then maybe you should have said that instead of talking about start capital... The mere difference between UG and GmbH is the start capital, so what's your expectation? People were selling us UG as an LLC equivalent. I was just pointing out it's not. There's no LLC or Ltd. equivalent in Germany.