GmbH or partnership?

July 2021
"Shouldn't I better set up a GmbH? That is certainly the question that we are asked in most of the initial meetings with founders and company successors. And we have been accompanying people in our law firm on their way to self-employment for 30 years. At this point we cannot unconditionally agree. Because what many do not know: Establishing a GmbH only makes sense if I have a product liability risk, that is, if I manufacture and sell products for whose faulty function my buyers can hold me accountable. In the case of a product liability risk, our answer is yes to the GmbH. Because then it is definitely the right legal form.

We often have to contradict the aspect that it is easier and better to obtain (e) loans with a GmbH. Often times, especially in the early stages of business development, lenders need private collateral to approve credits and loans. A 'superfluous' GmbH can thus cost a lot of money and effort under certain circumstances - and both would then simply be better invested elsewhere for a successful start. Extensive information, professional advice and critical scrutiny - this is what we call out to all people on the way to self-employment. "

Günter Golz, tax advisor and auditor 
Digital law firm Golz