New businesses
Starting a business: 7 things to sort out from day one
Published · 5 min read · NS Accounting & Tax Office
Choosing the legal form is the first decision with long-term cost. A sole trader is fast and cheap to set up but carries personal liability and a different tax scale than a private company (IKE).
Activity codes must cover all your real activities. Missing codes create problems with invoicing and with participation in subsidised programmes.
Choose your EFKA contribution class deliberately, knowing how it affects both current cost and your future pension.
Set up myDATA-compatible invoicing from the start by following our detailed guide to myDATA and electronic invoicing, a separate business bank account and a clear split between personal and business expenses.
Finally, build a simple 12-month cash plan including VAT, social contributions and advance tax. These obligations are predictable — and they are usually what catches new entrepreneurs out.
Before choosing a VAT scheme, consider whether the small business VAT exemption with a €10,000 threshold benefits you.
If the business rents commercial premises, see the rules on the lease agreement, rent payment and rent deduction.
When the business later grows, see our guide on whether a branch or a new company suits your expansion.
If the first years close with a loss, it is not lost: see how your business loss is carried forward for tax purposes to future years.