In many other countries who didn't have the mental anesthetics of "we are Germans, we are the best" and had to make a living and get competitive the process is much simpler ( not all, far from it ).
Also, "in the US is very easy and cheap" is a fallacy. First companies don't exist "in the US", they exist in states and the amount of shenanigans also varies. Don't forget the US has a very adversarial culture and if you don't be careful and pay a significant amount of money ( when you have some traction ) to a decent lawyer/accountant it's all fine and good until you get yourself in hot water with the IRS mixed with some kind of Better call Saul episode.
I have the general feeling the downside of things is much more lower in the US than in Europe, but I might be wrong.
Lawyers can’t seem to advise on tax issues or how to best structure your business(es). Tax advisors cannot seem to actually create a company. It’s a total mess. At least for anything nontrivial and for me as a non-German.
I thought maybe Estonia or someplace else in Europe, but the tax rules are such that if your center of operation is in Germany, you still need to do taxes here.
If anyone has tips or good contacts (accountants lawyers etc), I’d love to hear.
Then don't have the center of operations in Germany when there are lower-tax EU countries.
To be clear, I don’t have a problem paying taxes in Germany. The problem for me is primarily how hard it is to set up a company and deal with bureaucracy here. And even though there are great alternatives like Estonia, they sadly don’t really solve the problem.
In contrast, and I don’t know the US but how many people live in Delaware? :)
Then you have to choose between entrepreneurship and family. Germany is the country to have a family and work for a company your whole life, not for business ventures.
So that's not true.
It completely depends on the European country.
And given the Germany is the economic powerhouse of the EU, their bureaucracy doesn't seem to be hurting them much.
- 100y old inventions (automobile, chemistry).
- Then some more diverse set of so-called "hidden champions" (German name for world-leaders of some very special physical engineering products) which will sooner or later be fed to some US or Chinese companies.
- Some heavy industry which is currently leaving the country because of shenanigans in energy politics over the last two decades.
- Some of the dinosaurs the sibling comment already stated
- and finally lots of service businesses driven by MBAs and Legals who profit from the jungle German tax and law system is. They have zero interest in change and have been squeezing out the middle class in last 2-3 decades.
Germany is in recession right now as the only of the G7 countries. This is because the cheap Russian energy cannot cover the structural problems anymore but business, taxation and bureaucratic mentality is putting the whole country down. Can't recommend anymore.
Germany is the "powerhouse of Europe", not because of start-ups and business friendly environment, but because of giant 100-year old dinosaurs like Siemens, Bosch, Daimler, VW, etc, who were innovative in the post-WW2 times and can afford all the lawyers and tax consultants the state could ever require them.
But with US and China hot on their heels on areas that the German dinosaurs were champions like motor vehicles, and dominating all things internet related, they might not be a powerhouse 100 years from now if they don't improve and modernize their mentality and keep leaving bureaucracy and innovation to the retired boomers who grew up with "world powerhouse Germany".
In a couple of situations, I decided to give software away for free to avoid the hassle. If there's a simple solution to get advice, I'd really appreciate that.
The author writes "The best approach is to start as an “Einzelunternehmer” (sole proprietor). You can register this at your local town hall for a nominal fee, and you’ll typically receive confirmation within a few days."
When I did it the cost was 35 Euro, I think it depends on city. One can argue why this step can't be done online but until 2023 it wasn't possible to register a car online in Germany either.
Then a letter to the local tax office (in Germany they're by city or region, not central. Then as the author says ignore VAT until you're over the threshold.
It also makes you a better business partner (in theory) as you have crossed a certain amount of effort to create a GmbH
maybe that's the goal of the system? Small players end up dying so big corps who can afford an army of accountants and lawyers prevail.