At the beginning of any business foundation, there are often formation costs and investments so that the company can start regular business operations. Ideally, founders should consider these costs early enough as they need to cover up for them with any financing activities they undertake. Generally formation costs can be divided into:
❗Remember that these categories portray a good starting point of all the things one should think about, but it is still necessary to analyze your own business case carefully as it will most likely come with its own individual peculiarities ❗
While most founders think about product and marketing costs, the category of administrative costs often gets neglected. Administrative costs can differ and are dependent on the legal form you choose. They include:
Keeping this costs in mind is thus also important when searching for the right legal form as they can range from around 70€ for sole proprietors to above 1.000€ for the foundation of a GmbH. It’s also important to keep in mind that, in addition to the actual formation costs, some legal forms require a share capital.
Always include formation costs in your financial planning and check whether you can afford the foundation in the manner you have planned to.
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