Legal Form for small Bed & Breakfast Startup

[MunichDave]

Hi,

I have been reading different sites about the GBR, Mini GMBH, GMBH etc etc but if you was to start up a small Bed & Breakfast in Germany which Legal Form would you take and why ?

Thanks

Dave

[AchmedibnYussuf]

It always depends

If it was risky in any way (in the case of bed&breakfast possibly high debt to be able to finance the start) I would always opt for the Mini-GmbH (UG) or, if it was big enough for the GmbH. The reason is simply the limited liability which would help me sleep much better, even if business was going badly.
If you don't worry that much about you sleep and your liability the Einzelunternehmerschaft or the GBR might be the Legal Form of your choice.

There are mainly two questions to consider:
- limited liability?
- alone or together?

[MunichDave]

Achmedibn

Thank you for your response,aware its basic stuff for most of you guys, but its new to me.

If I set up as a Full GMBH the 25k do I have to have that sum in a bank or is this part of the business lets say part of the 60k I pay for the loan of a pension?

If I have a Mini GMBH by what amount am I liable to ?

What is the cost of setting up a Gbr, Mini GmBH, GMBH ?

I am going to see my tax advisor next week but If I understand how it works before I go it will give me a better informed decision.

Thanks again

Dave

[AchmedibnYussuf]

The 25k€ of the GmbH don't necessarily have to be cash or cash equivalents, they can be as well the building/car/whwatever you use for your business (well in fact: some things are not excepted. I don't know the exact laws.), long as it is equity. So you can't count a bank loan to these 25k. These 25k have to be your own.
Note: At the beginning it is enough to have 12.500€ equity, but in this case you have further 12.500€ liabilitys in your private area.

If I have a Mini GMBH by what amount am I liable to ?

Only the equity you invested + earnings you make - the sum of money you distributed to you self and other shareholders.

What is the cost of setting up a Gbr, Mini GmBH, GMBH ?

Again it depends... For the Mini GmbH and the GmbH you always have to pay a Notar, so it is more expensive than the Gbr. Hopefully someone else can name you wild guessings