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To Incorporate or not to Incorporate

woman making decision about incorporating her business?

What is better incorporating or working solo (resp. with partners)?

Good question! Next one, please. Okay, please consider the following questions. The more questions you answer with "yes", the more it makes sense to incorporate.

  • Are you intending to onboard a venture capitalist?
  • Does your line of business have high financial liability risk?
  • Easy to work with red tape?
    Latest when it comes to bookkeeping, a lot of formal details will have to be met – with the help of your accountant.
  • Are your most important customers incorporated?
  • Is your freelancing making more than 100 k€ profit?
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To incorporate or not to incorporate is an important question. Below, we would like to reflect on considerations on incorporating or remaining a solo business person or inside a civil partnership.

Is the opening and closing of a company something easily and quickly done?

Creating a company is committing. It is comparable to raising a child. You can easily open it. However, you cannot close it immediately. You will have to wait at least one year and bear the costs until the the liquidation process is over. It might not be the best option if your business is tied to your personal services and want to be flexible and are not sure whether you will stay in Germany for the next 2-3 years at least. Otherwise, it does not really matter.
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Shelf Companies from Beam my Presence to Germany UG
If you really want to open a company quickly, then consider buying a readymade company right off the shelf!
Beam my Presence to Germany GmbH (limited liability) is our associate business partner for virgin shelf companies.

Beam also provides your new company with a virtual office, when you do not have a physical address here. Find the prices and the locations here. You book the virtual office right after ordering your company at the end of the founding form.