What tax obligations do I have as a start-up entrepreneur?
January 8, 2022 | 40,00 EUR | answered by Isabel Müller
Dear tax advisor,
I am Gerda Helbig and I am currently planning to start my own business as a self-employed entrepreneur. I have already developed my business concept and am now in the process of finalizing all formalities. However, I have some questions regarding my tax obligations as a startup entrepreneur.
Firstly, I am unsure about which taxes I will have to pay as a self-employed individual in the future. I have heard that in addition to income tax, I also have to pay value-added tax and trade tax. Could you please explain to me which taxes are relevant for me and how much they will amount to?
Furthermore, I am thinking about how to best organize my accounting as a startup entrepreneur to always keep track of my income and expenses. Are there any specific software solutions that you could recommend to me to efficiently and accurately manage my bookkeeping?
I also wonder if as a startup entrepreneur, I can take advantage of tax incentives or benefits to reduce my financial burden. For example, are there specific regulations for startup entrepreneurs that I could use to lower my tax burden?
I would greatly appreciate it if you could assist me with these questions and provide me with possible solutions. I want to ensure that I fulfill my tax obligations as a startup entrepreneur correctly and can manage my finances optimally.
Thank you in advance for your support.
Sincerely,
Gerda Helbig
Dear Mrs. Helbig,
Thank you for your interest in my online consultation and for your questions regarding tax obligations when starting a business. I am happy to be able to assist you with your concerns.
As a self-employed individual, you will indeed have to pay various taxes. The three most important taxes for you as a startup are income tax, value added tax (VAT), and trade tax. Income tax is based on the profit from your self-employment and is calculated at a progressive tax rate. VAT applies when you provide taxable services and is usually 19%. Trade tax is a municipal tax levied on the business income and can vary in amount depending on the municipality.
To efficiently manage your accounting, I recommend using suitable accounting software. There are numerous programs on the market designed specifically for self-employed individuals and small business owners to help you keep track of your income and expenses. Popular accounting software includes Lexware, DATEV, or sevDesk. With these programs, you can create invoices, record receipts, and maintain your digital bookkeeping accurately.
As a startup, you may also have the opportunity to benefit from tax incentives or discounts. There are various funding programs and tax regulations specifically aimed at startups to help reduce your tax burden. These may include VAT exemptions for small businesses, startup grants, or tax deductions for investments.
I hope this information has been helpful to you and I am available for any further questions you may have. I wish you success in your business venture and in managing your tax obligations.
Best regards,
Isabel Müller
