Different paths, different tax treatment. Pick the structure that fits your scale.
Small entrepreneur — the easiest entry path
€25,000
gross income per year (2025 limit)
€12,348
Grundfreibetrag — income below this is tax-free (2026)
Register your business at the local Rathaus (town hall).
Google your city + "Gewerbeanmeldung" — most cities now have it online.
Fill out personal info + purpose of business — registration is done in minutes.
A few days later you receive a written, signed confirmation by post.
Pay the registration fee — typically €20–40 (varies by Kommune / municipality).
Heads-up: Procedures vary by Kommune. Always check your local Rathaus website for exact steps and fees.
Gesellschaft mit beschränkter Haftung — similar to the UK "Ltd."
The biggest difference from the Kleinunternehmer model: you can earn unlimited revenue, and you are not personally liable with your private estate. Your liability is capped at the company's share capital.
€25,000
required as Stammkapital (at least €12,500 paid in at founding)
Limited
Your private money & property are protected.
Note: A GmbH also requires a notarised founding contract, registration in the Handelsregister, and ongoing bookkeeping (often with a Steuerberater).
Aktiengesellschaft
Stock corporation. Minimum €50,000 capital. Used by larger companies that want to issue shares.
Offene Handelsgesellschaft
General partnership — two or more people run a business together. All partners are fully liable.
Kommanditgesellschaft
Limited partnership — one general partner (full liability) plus limited partners (liability up to their stake).
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