Small Business Obligations
As with any business, there are a few important points to keep in mind when it comes to small businesses . Only the term small business does not release you from certain entrepreneurial obligations:
- Income limit and allowances
- Small business liability
- The Board
- Designation and company name
Income limit and allowances
Like any entrepreneur and the small business needs in addition to the income tax and the business tax to pay, one for him allowance of 24,500 euros applies annually. Below this amount, no trade tax has to be paid. The small business owner only has to pay sales tax if he does not make use of the small business regulation .
Small business liability
According to GRADCHEM.COM, the small business owner is fundamentally liable for his business activities as a sole proprietorship with his private assets . To start the small business is no start-up capital required and everyone is free to decide for themselves how much seed money he wants to bring to the small businesses.
When setting up as a team in the form of a GbR, each partner involved is also liable with all of their private assets. This liability applies to all shareholders regardless of the question of guilt , which led to the liability.
The small business owner bears sole responsibility for his company and thus for all business decisions. He also represents the small business externally. As a sole proprietor, he bears sole responsibility for all corporate decisions. In return, he must bear the sole business risk.
Designation and company name
Since the trader is a non-merchant , he always appears under his first and last name in business dealings . In addition, the entrepreneur can add a material addition or a business name, but this must not appear company-like, whereby a reference to the activity or the industry is permissible, such as “Eisenhandel Rudi Hammer”.
A merchant, on the other hand, may give his small business a fantasy name and use it under it, but the addition “e.Kfm” or e.Kffr “( registered merchant ) must be used. Furthermore, it is also possible to continue an existing company name in the course of a company succession, in this case only a reference to the current operator has to be made: Eisenhandel Rudi Hammer, Inh. Joachim Meier.
Overview of the costs of small businesses
For a small business, the start-up costs only exist in the form of the registration fee at the trade office . This registration fee is due for applying for a trade license. Each municipality sets the fees for this itself in accordance with its fee ordinance. Usually these are an average of 60 euros .
There are no costs for notary or entry in the commercial register. If you are founding a GbR with others, it can be advantageous for you and the other founders if you hire a lawyer to draw up a GbR contract . You would then have to bear the legal fees.
Of course, there are other possible costs for maintaining your business, office costs and more, which are very individual.
Registering small businesses – this is important to note
If a small business is to be registered , the small business operator must register his activity with the trade office responsible for his location . He must therefore carry out a fee-based business registration. Furthermore, the trader must also inform the trade office of certain facts, such as de-registration and re-registration.
- The registration of a small business is informal . However, the trader must meet certain reporting obligations and requirements , which depend on the type of trade (craft, hospitality).
- After registering with the trade office, the small business owner automatically receives a form for registering his small business for tax purposes .
- If employees are to be employed, the small trader must apply for a company number at the employment office after registering .
- Once the small business has been registered, it is necessary to register with the responsible Chamber of Commerce and Industry .
- In addition, the trader must register with the employers’ liability insurance association .
- The employees are to be reported to the respective health insurance companies .
Only when the small business owner fulfills the status of a merchant with his small business does he have to have an entry made in the commercial register . However, the small business owner can also voluntarily register in the commercial register, whereby he must then also observe all the rights and obligations of a businessman with his small business. That would make him a so-called can-dealer .