Sole proprietorship (Einzelunternehmen)
Also: Einzelunternehmen, Einzelunternehmer, sole trader
In short
A sole proprietorship is run by a single natural person, without minimum capital, without a partnership agreement and without a notary. The owner is liable for all debts with their entire private assets.
Sole proprietorship (Einzelunternehmen) explained
The sole proprietorship is the easiest form to set up: register the trade, send the tax registration questionnaire to the tax office, done. Liberal professions only register with the tax office. For activities not requiring a permit, you are usually ready to start after 1 to 3 days. Without a commercial register entry, you trade under your first and last name, supplemented by a business designation. If the business requires a commercial operation, you become a registered merchant. You usually determine profit by cash-basis accounting, and it is taxed at your personal income tax rate. If you are wary of the liability risk, compare it with the UG.
