To Incorporate or not to Incorporate

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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