Simplepreneur solo business stack

Company & tax

Start simple, then buy structure when it solves a real problem.

For software sold through an MoR, the first hard choice is not customer VAT. It is whether privacy, liability, and company optics are worth the setup and accounting work before revenue exists.

Planning model

Compare cash after MoR fees, expenses, tax, and salary choices.

The model is directional. It is useful for seeing when structure changes the shape of cash, not for filing a return.

MoR fee
Pre-owner profit
Company salary
After salary

Cash-flow comparison

The company columns separate private cash from money retained in the company. The sole proprietor column has no company-retained cash.

Setup friction

The quick path is not always the permanent path.

Choose the structure that fits the next decision. First revenue, liability wrapper, and relocation are different jobs.

Einzelunternehmen

Fastest Germany-aligned start for productized software sales. The tradeoff is weaker privacy because legal identity can surface in trader disclosures.

  • Usually online Gewerbeanmeldung plus ELSTER questionnaire.
  • Cash-basis bookkeeping instead of corporation-level accounting.
  • Privacy depends on business address, marketplace rules, and public disclosures.

German UG/GmbH

Cleaner liability and public company wrapper while living in Germany, but the start has notary, share capital, register, bank, and double-entry bookkeeping.

  • Best jurisdiction match if management stays in Germany.
  • Setup and ongoing accounting are the cost.
  • Not the fastest path if the next task is accepting first payments.

Foreign company from Germany

A UK Ltd or similar can help with English-language admin and some privacy goals, but German effective management can pull tax treatment back to Germany.

  • Useful wrapper only if cross-border tax and accounting are understood.
  • Do not model as low-tax foreign profit while decisions are made from Germany.
  • Needs advisor validation before it becomes core infrastructure.