Don't want to be cheated by your business partner?
Hello everyone,
The time has come, and I'm starting my first business with a friend. However, you always hear stories about people being cheated on by their business partners. Therefore, I want to take precautions and find out what I can do to prevent this from happening. Yes, I know: You should be sure that your friend won't do something like that. But we all know that "friendship ends where money begins," at least for some people, unfortunately.
So, actually there is one "main problem" or one big concern:
He already has a company abroad through which we would run the business. The reason is that this would save us taxes (we both plan to emigrate later). If we were to establish a UG or even a GmbH in Germany, we would have to pay taxes here (please don't be moralizing, we already donate money and will continue to use it for good causes, but we would like to choose what we use it for ourselves). Normally, I would have set up a joint UG, but since he already has the company, it's simply more practical this way.
Anyway, because it's his company, he controls all the bank accounts and the accounting. We would also close individual accounts, so I would do some appointments, he would do others. In other words, I wouldn't be able to control exactly how much money was coming in from his clients; he could just pretend it was less than it actually was.
Should I demand full access to the accounts and books? I think that's normal in a situation like this, right?
I’m happy to give you more tips!
LG
(1 votes)
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Hello Duda,
In Germany, their 30% tax on profits is paid, abroad there are often 20-25%, so no such big difference depending on the country.
He would have to sell you 50% of his company, so that you own 50% of the share capital. As an alternative, capital is increased.
If it is registered in the Commercial Register that you are 50%, you are legally safe and have the right to account insight & control, etc.
At the construct, I’ll give you a letter and a seal that’s going back. In all directions.
Make it neat and correct or let it stay the same.
emesvau
There’s nothing illegal about it, it’s an LLC. Go complain to the billionaires, instead of doing small start-up founders here
because I’m very busy with the subject of employees…. a single LLC is taxed like a holding company, how exactly do you want to get money out? And if you were hired (besides the fact that you were actually no longer than that) an LLC is not sweaty because it would have to be taxed in the USA for the first time, then via double taxation agreements also here and that would be a lot outrageous for nothing.
The LLC is not accidentally in deleware and here in Germany the authorities are unknown…. and he does all this black?
Did I say it was illegal? I’m not complaining to anyone. If you want to handle your business through an existing company that doesn’t even belong to you, that’s all, but not a start-up.
A lot of success in failure.
yes, that is so. 0 tax in the USA if everything is fulfilled, but just 100% tax in Germany. The LLC wins from me $100,000, i.e. it has to tax 100K here as an income and it is its private money. Just take off the account there is also no… you could sign up a retail store and get the money out by bill. So you’d come to the money, but you’d have 0 choice in the company.
These anonymous locations are chosen mainly because they are anonymous and German authorities do not get it first (so do not know that revenues are taxed here), that must be actively reported by the societyers… and all too many “forgot” that then.
ABER: The tax office is not stupid… you then bills to German companies. On the one hand, they are often not accepted without further delay, on the other hand, the tax office becomes pale-hearted when it comes to external auditing at one of your customers then keeps such a low bill in hand and check it after… and then it becomes quickly uncomfortable.
And 2 members again mean that the LLC does not have to pay any taxes because it is then reclassified legally.
In short, I would say 99% is there something fault or just ignorance
I’m not an expert yet (because I’ve been working in slowly since December), but I’m already relatively sure.
A UG doesn’t cost the world, so it’s clean. And if the UG is running and in the future a foreign form of society is to be created, it can take over the shares of the UG, or you can transfer everything.
Customers in Germany, you in Germany…. it makes no sense to have an LLC. I want an LLC or Corp because I actually want to edit the market there (also from standing out…. just how ne US bill is critically polluted here in Germany this looks different too).
https://uskanzlei.com/pages/exempt-llc
as I understand it is written as in my above comment (if not bad)
I will receive money through account insight + waterproof contract 🙂 but I will inform myself again. Thanks, cool that you’re interested in it too!
That’s right. And unfortunately this is as you write it wrong (just as I would like to do it, but not)
At an LLC, the money cannot remain in the company, but the profits are taxed on the person side at the end of the year. Say everything that remains in money here must be given to the tax office and flows into the normal income tax. Should the money remain in the company it would have to be a corps, then corporation tax falls into the usa (20% to the federal government, and x% to wyoming to / florida are just under 5%).
And it remains the question of how you get exactly to the money if you are not a shareholder and not a hired person.
that’s a Wyoming. as far as I know you don’t have to pay tax in the USA as long as the money remains in business and you don’t get any income in the US. in Germany, too, because no money is taken from the company. we would simply emigrate (e.g. Dubai) and pay off only afterwards.
Thanks for your sarcasm. So you want me to start new or what’s your advice?
For the first time, a few things should be resolved. -> You write here somewhere in response that the business form is an existing LLC. This means that you have to be included as a “partner” in proportion. A shareholder agreement is of course to be settled for this purpose.
All rights and obligations shall be retained in this partnership agreement.
So you should first clarify how your business relationship should look. In his place, I wouldn’t give you any shares of my company. That means you wouldn’t be a partner. So you’d be more of an employee with a job contract.
Thank you. It may be possible to regulate it project-related in the contract, so that I only get 50% of the revenues that come from our joint project. I’ll see.
This will be difficult to define or differentiate. As you said, you should first clarify how to look like your business relationship. Are you a shareholder or an employee? You may. Managing Director/Procurist or only one project manager. What are your tasks, your duties and how are you paid.
What is with social security contributions etc.
If you want to save tax, you shouldn’t be praised for “turning”. This is eyewitness and does not take place with certainty in the amount of “saving” taxes.
Well, I should have let that part out. I’m not going to answer the real question here. Suppose his company was in Germany. Should I ask for an account? After all, he’s got other things going over the company, but keep our project.
Well, who is so honest with taxes will be able to expect comparable ‘health from his business partner. With the difference that you could take the place of the tax office.
with an LLC you can’t save taxes unless you make it black. LLC in Deleware will publish the data nciht, so you would have to report it to the authorities on your own because you are taxing your income as normal as with a company. The LLC is a rather complicated tweeter object from legal company and personenfirma.
If you are looking for LLC, there are dozens of offers that you would not have to pay any taxes (but do not suggest that you really have to be on the move), and if you read such diverse groups you will find a number of those who do not report the construct Dalaware & to the local authorities (sometimes also ignorant).
The questioner should be extremely cautious about this, perhaps it is still heading towards tax fraud.
I’m sure that’s how you are.
You’re right. I lack the experience of fraud. You shouldn’t do any business / profits in D.
Wow, you obviously have 0 idea.. Then you go on pushing your taxes to the corrupt politicians, which they then spend on cycling in Bolivia instead of for meaningful things (in their own country). I most likely pay much more money for non-profit purposes than you, so you don’t have to play up like that. At least my money comes to where it should be. By the way, tax optimization has nothing to do with dishonestness, as it is completely legal, but I realize you are not the expert. Thanks anyway and nice day still!
I’m pretty suspicious.
Because you don’t own the company. So you’re an employee and work either free or black. Both are not very good for you.
Yes, in any case, and you’ll give it to your own tax advisor.
Okay, thanks
You want to deceive us all through tax evasion and expect sympathy when your “partner” cheats you?