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This article seems to be new, but the info in it appears to be very outdated.

1. Most startups now create an UG which has most of the GmbH benefits and protections, but only negligible cost.

2. The handelsregister website is deprecated. It's replacement is quite nice and fast.

Their section 2b also doesn't apply for UG because it's so cheap there is no need for trickery.

Their section about issues finding a bank seem weird to me. I just took the paper slip from the notary office and walked over to Deutsche Bank (the largest mainstream bank) and it took them only a few minutes to set up the account. Then after the card arrived in the mail, I walked back there, paid in the money and gave the paper confirmation from them to the notary guy. I'm not sure how you could make it any easier.

The only thing where I agree is that the spam is a problem.



It's also not mentioning that incorporating (or being an Einzelunternehmer exceeding €600k) means you need to do formal accounting (Bilanzierung) which is a lot more involved than what any non-expert should handle personally so you will need a tax adviser to avoid severe fines for easy bookkeeping mistakes.

That's another factor when deciding whether to go for a UG/GmbH or Einzelunternehmer. That said, the costs are based on revenue so you'll ease into it, it's just another cost to be aware of.

Oh, and if you hire anyone for any editorial or creative work and they're not doing it as a UG/GmbH, be aware of Künstlersozialkasse payments (which you have to handle yourself unprompted). You'll usually get a visit by the Deutsche Rentenkasse after about 3 years for an audit and they'll be very unhappy if you didn't pay your dues.




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