Water Archives - ℄ Real Estates

What does 5% return mean? Real estate, Capital investment, Positive 🆚 Negative cash flow

L_kinski — Mon, 02 Oct 2023 17:03:50 +0000

What does 5% return mean? – The world of finance and investing can often be confusing for beginners, especially when it comes to terms like “yield.” In this videos plus article, we’ll take an in-depth look at the concept of 5% return and why it’s valued differently in different asset classes. This is how high the return must be “at a minimum” if you want to make money right away in the first month of renting.

5% return: All 3 themes in 1 video

What does 5% yield mean? Why is a 5% return too low if you want a cash flow property? And why is 5% yield good again for an investment property?

What is return on investment?

Return is a term often used in connection with investments. It refers to the profit or potential return that an investment provides in relation to the capital invested. Return can come in various forms, including interest, dividends, rental income or capital gains.

A return of 5% means that an investment has generated a profit of 5% of the invested capital in a certain period of time. Sounds simple, doesn’t it? But the meaning of that 5% can vary significantly depending on the type of investment. Let’s take a closer look.

Why do you need more than a 5% return?

The question of whether 5% return is enough depends on your financial goals and risk tolerance. If you are looking for stable income and immediate cash flow, 5% might not be enough to cover costs and make a profit in some cases. In this case, you would need to look for investments that offer a higher return.

On the other hand, 5% return might be quite acceptable for long-term investors aiming at capital gain. However, it is important to consider individual circumstances and long-term goals.

Why is 5% bad for cash flow properties?

In the world of real estate investing, the term “cash flow” is crucial. Cash flow refers to the rental income that is left over after deducting ongoing operating expenses and mortgage payments. If you own a property and only get a 5% return, that means you’re making a relatively small profit after deducting costs and expenses.

Such cash flow can be considered poor in many real estate markets, especially if mortgage, maintenance and tax costs are high. In expensive real estate markets, it can be difficult to be profitable with a 5% return, as the cost of capital can exceed income.

Here is a video that further explains this concept:

[Video: Warum sind 5% bei Cashflow-Immobilien schlecht?]

Why is 5% almost good again for investment real estate?

On the other side of the spectrum, we have investment real estate. This type of property is often purchased with the goal of achieving long-term capital growth. If you buy a property and are able to generate a 5% return, this can be considered a solid investment.

Why? Because investment real estate is designed for capital gain. A 5% return could mean that the value of your property will increase over time, ultimately leading to a higher total return. It’s important to note that investment properties are typically geared toward long-term gains, while cash flow properties are geared toward regular income.

Watch this video to understand why 5% returns on investment real estate can be a good thing:

[Video: Warum sind 5% bei Investment-Immobilien fast schon wieder gut?]

Conclusion

The importance of 5% return depends heavily on the type of investment and individual goals. In the world of real estate investing, cash flow properties are focused on regular income and may require a higher rate of return to be profitable. Investment properties, on the other hand, can benefit from a 5% return as a solid long-term investment.

It is important to consider your own financial goals and risk tolerance when making investment decisions. Ultimately, return is only one factor of many that should be considered when choosing investments.

Der Beitrag What does 5% return mean? Real estate, Capital investment, Positive 🆚 Negative cash flow erschien zuerst auf ℄ Real Estates.

Real Estate Location: Investing in… – Lukinski Rating / Investment Atlas Germany

L_kinski — Tue, 31 Aug 2021 13:48:29 +0000

Immobilien Lage – Lage macht den Unterschied, zwischen Investitionen mit Ziel Rendite (direkte Einnahmen, meist B- und C-Lagen) oder in eine Investment Immobilie (“Spekulation” auf Wertsteigerung, A-Lagen). Das aktuelle Lukinski Rating zur Attraktivität von Städten in Deutschland, über 40.000 Einwohnern. Danach wird es interessant, denn wir werfen einen Blick auf die Hidden Champions, mit top Lukinski A+ Rating und D- Rating und höherem Risiko. Sie suchen eine günstige Finanzierung in Deutschland? Checken Sie Konditionen und Anbieter in meinem Vergleich.

Lukinski Rating: Lage & Attraktivität

Wer seine erste Immobilie kaufen will, der wird schnell von den verschiedenen Lagearten hören. Doch wie können Sie die Attraktivität von Städten einschätzen? Insbesondere dann, wenn es nicht um die allseits bekannten Städte in A-Lagen geht, sowie München, Hamburg, Berlin, Köln, Frankfurt oder Düsseldorf. More about Düsseldorf: real estate Düsseldorf.

Der Kapitalanlage Atlas Deutschland wirft einen Blick auch fast 500 Städte in Deutschland und vergleicht Ihre Attraktivität und Entwicklung.

Hierbei handelt es sich nicht um eine Kaufempfehlung. Das Rating dient der allgemeinen Information.

Immobilien Atlas: Sortiert nach Rating

Städte sortiert nach Rating:

Immobilien Atlas: Sortiert nach Einwohner

Städte sortiert nach Einwohnerzahl:

Metropolen 500K +

Städte bis 500 K

So funktioniert das Rating

Für die Bewertung einer spezifischen Lage (Makroperspektive) gibt es viele Parameter, zum Beispiel die Wirtschaft, deren Verteilung auf Gewerbe, Industrie und Produktion, die Infrastruktur, Bildungsstätten, ebenso wie Ärzte, Freizeitaktivitäten, aber auch das Umfeld, Stadtteile und Nachbarstädte. Ein weiterer Faktor ist natürlich der Kaufpreis (oder auch Mietpreis), je höher die Quadratmeterpreise, desto er zieht es die Menschen in den Speckgürtel der Großstädte. All das sorgt dafür, dass einzelne lagen an Attraktivität verlieren oder an Attraktivität für Menschen gewinnen. Unser Rating vergleich die Attraktivität und Entwicklung miteinander.

Stand:
Auswertung: Städte in Deutschland
Kriterium: Mindestens 40.000 Einwohnern
Kategorisierung: A (+) bis D (-)

Für Immobilieninvestoren, teilt der Kapitalanlage Atlas, die Attraktivität der einzelnen Städte in 4 Kategorien. Vom Lukinski A+ Rating, für besonders attraktive Regionen, die einen hohen Zuzug erfahren, bis zum D- Rating, Städte die schon seit Jahren und Jahrzehnten stagnieren, wenig attraktiv Menschen und Wirtschaft. Inflationsschutz steht bei uns im Vordergrund. Je höher das Rating, desto attraktiver ist die Lage für den Einstieg von Immobilieninvestoren.

Städte im Vergleich: Wo investieren?

Im Folgenden finden Sie zunächst die wichtigsten deutschen Städte, im Vergleich. Metropolen mit über 500.000 Einwohnern, dazu Großstädte von 250 000 bis 500.000 Einwohnern und noch einmal alle Großstädte von 100.000 bis 250.000 Einwohnern. Danach wird es interessant, denn wir werfen einen Blick auf die Hidden Champions, mit top Lukinski A+ Rating und D- Rating und höherem Risiko mit der Frage:

Wo investieren in Deutschland?

Metropole ( < 500.000 ) - Hoher Kaufpreis, langfristiger Gewinn

Metropolen / Großstädte im Überblick – Tendenziell eher A-Lagen, mit Investment Immobilien. Das heißt, wenig Überschuss aus Mieteinnahmen, dafür hohe Wertsteigerung des Grundbesitzes, egal ob beim Wohnungsverkauf oder Hausverkauf.

Zuerst ein Blick auf die größten Städte, die jeder hier kennt, mit über 500.000 Einwohnern.

Stadt	BL	Rating
		Note	Wert	Kurzzeit	Langzeit
Berlin	BE	B+	5,8	A-	B+
Hamburg	HA	B+	6	A+	B-
München	BA	A+	11,9	A+	A+
Köln	NRW	A	8,7	A+	A
Frankfurt am Main	HE	A+	12,6	A+	A+
Stuttgart	BW	B+	5,2	A	B-
Düsseldorf	NRW	B+	5,8	A	B+
Leipzig	SA	A+	13,1	A+	A+
Dortmund	NRW	C-	0,2	D-	C
Essen	NRW	D-	-1,7	D-	C

Hier kommen Sie zur vollständigen Liste mit allen Metropolen:

Rating: Metropolen ab 500.000 Einwohnern

Großstadt (100.000 – 500.000) – Moderater Kaufpreis, sofortige Rendite

Ein Blick auf die 2. Liga der Städte, Großstädte bis 500.000 Einwohner im Überblick – Tendenziell gute B-Lagen mit Rendite Immobilien. Das heißt, die Kosten (Tilgung des Darlehens, Zinsen und Instandsetzung), werden durch laufende Mieteinnahmen gedeckt. Dafür ist der Wertentwicklung geringer, als in A-Lagen.

Großstädte bis 250.000 Einwohner im Überblick – Tendenziell ein Mix aus B-Lagen und oft guten C-Lagen mit Rendite Immobilien. Das heißt, wie schon bei den Großstädten, die Kosten (Tilgung des Darlehens, Zinsen und Instandsetzung), werden durch laufende Mieteinnahmen gedeckt. Dafür ist der Wertentwicklung geringer, als in A-Lagen. Allerdings Vorsicht bei Immobilien in C-Lage, denn das Risiko, dass Wohnungen oder Häuser auch einmal leer stehen, ist größer als in B- und wesentlich größer, als in A-Lagen.

Stadt	BL	Rating
		Note	Wert	Kurzzeit	Langzeit
Duisburg	NRW	D-	-1,8	D-	C
Bochum	NRW	D-	-4,8	D-	D-
Wuppertal	NRW	D-	-1,7	D-	C
Bielefeld	NRW	B-	3,5	B	B-
Bonn	NRW	B+	5	A+	C
Münster	NRW	A+	13,7	A+	A+
Mannheim	BW	D	-0,8	D	D-
Karlsruhe	BW	A-	6,6	A+	B
Augsburg	BA	A+	11,4	A+	A+
Wiesbaden	HE	C+	2,8	A-	C-

Hier finden Sie die Liste mit allen 67 Großstädten in Deutschland, von 100.000 bis 500.000 Einwohnern:

Rating: Großstädte bis 500.000 Einwohner

Städte ( < 100.000 ) - Mehr Rendite, mehr Risiko

Ihr Vorteile in Städten zwischen 40.000 bis 100.000 Einwohnern? Sie haben weniger nationale und internationale Konkurrenz. Insbesondere, wenn Sie vor Ort wohnen, ein guter, strategischer Vorteil, auch für Immobilien Einsteiger. Welches Rating hat Ihre Stadt? Finden Sie es hier heraus:

Rating: Städte bis 100.000 Einwohner

Hidden Champions für Ihre Kapitalanlage

Jetzt wird es interessant, denn wir werfen einen Blick auf die Hidden Champions, mit top Lukinski A+ Rating!

Danach finden Sie noch eine Liste, mit Städten, die eine sehr negative Entwicklung auf Reisen und mit D- Rating höheres Risiko bergen.

Top 10 A+ Ratings

Hier sehen Sie die top 10 A+ Ratings:

Bernau bei Berlin (Brandenburg), Rating: 25,2
Falkensee (Brandenburg), Rating: 22,3
Oranienburg (Brandenburg), Rating: 17,7
Potsdam (Brandenburg), Rating: 17,0
Bad Kreuznach (Rheinland-Pfalz), Rating: 16,6
Dachau (Bayern), Rating: 15,8
Landshut (Bayern), Rating: 15,3
Gießen (Hessen), Rating: 15,2
Goslar (Niedersachsen), Rating: 14,8
Ostfildern (Baden-Württemberg), Rating: 14,6

Alle A+ / A Ratings in Deutschland

Sie wollen noch mehr Hidden Champions in Deutschland kennen lernen? Dann sehen Sie sich hier alle A-Rating in Deutschland an! Diese Städte sind extrem beliebt, lesen Sie hier mehr, Lukinski A+ / A Ratings für Immobilieninvestoren:

A+ / A Ratings in Deutschland

Hidden Champions mit A+ Rating im Überblick – Starke allgemeine Entwicklung, Zuzug von Menschen, hier können Sie gute Renditen erzielen, insbesondere mit Eigentumswohnungen, die Sie kaufen und vermieten.

Alle B- / B / B+ Ratings

Alle B-Ratings zeigen Städte mit solider Entwicklung. Hier können Sie auch Rendite Immobilien finden, die unmittelbar für Erträge sorgen, die Ihre monatlichen Belastungen um Tilgung, Zinsen und Instandhaltung decken. Im Idealfall mit zusätzlichem Extra, für aktiven Vermögensaufbau.

B- / B / B+ Ratings in Deutschland

Alle C- / C / C+ Ratings

Alle C-Ratings zeigen Städte mit geringeren Wachstumsraten. Hier sind Immobilien als Kapitalanlagen schon eher mit Vorsicht zu genießen, denn das Leerstand Risiko ist größer. Heißt: Jeden Monat, in dem Ihre Rendite Immobilie nicht vermietet ist, bezahlen Sie drauf. Außerdem ist die Wertsteigerung der Immobilie sehr gering, bis kaum vorhanden.

C- / C / C+ Ratings in Deutschland

Risk Champions: Nichts für Einsteiger

Immobilien Einsteiger sollten diese Städte eher meiden. Im Rating liegen diese Städte am unteren Ende, tragen damit das größte Risiko für Leerstand und negative Wertentwicklung der Immobilie.

Top 10 D- Ratings

Hier sehen Sie die am wenigsten, attraktiven D- Ratings:

Frankfurt Oder (Brandenburg), Rating -20,9
Gera (Thüringen), Rating -18,5
Neubrandenburg (Mecklenburg-Vorpommern), Rating -15,6
Zwickau (Sachsen), Rating -15,1
Dessau-Roßlau (Sachsen-Anhalt), Rating -13,7
Wilhelmshaven (Niedersachsen), Rating -12,3
Wismar (Mecklenburg-Vorpommern), Rating -12,3
Cottbus (Brandenburg), Rating -11,5
Schwerin (Mecklenburg-Vorpommern), Rating -10,8
Unna (Nordrhein-Westfalen), Rating -10,3

Alle D- / D Ratings in Deutschland

Risikolagen für Immobilieninvestoren:

D- / D Ratings in Deutschland

Risk Champions mit D- Rating im Überblick – Objekte in schlechter C-Lage sollten Sie nur kaufen, wenn Sie bereits Erfahrungen haben. Nicht nur mit Kauf und Vermietung, auch mit Renovierung und Sanierung.

Der Beitrag Real Estate Location: Investing in… – Lukinski Rating / Investment Atlas Germany erschien zuerst auf ℄ Real Estates.

Lake Starnberg: most expensive roads & real estate in the five-lake region

Laura — Mon, 07 Jun 2021 13:48:44 +0000

Lake Starnberg: Lake Starnberg is part of the “Fünfseenland cultural landscape” and is located in the south of Germany near the state capital Munich. The Fünf-Seen-Land is part of the Upper Bavarian region and, in addition to Lake Starberg, also includes Lake Wörthsee and three others. Lake Starnberg is not only an attractive holiday destination, it is also one of the most popular places to live in Bavaria. Cultural richness, unspoiled nature and the quiet and relaxed atmosphere make the communities around the lake a popular place to live. The rich and beautiful feel at home at Lake Starnberg. Whether it’s a holiday home on the shore, an apartment, a detached house or an exclusive villa with a view of the lake as a permanent residence – not only German celebrities can be found there, but also non-European aristocracy, successful entrepreneurs and wealthy heirs.

Here you will now learn everything about the most expensive roads at Lake Starnberg. Back to the list: Most expensive roads in Germany!

Most expensive roads around Lake Starnberg

Around Lake Starnberg and in the entire “Fünfseenlandschaft” cultural landscape, there are numerous plots of land and properties which are particularly sought after due to their proximity to the water and nature. Here, in the middle of the beautiful landscape, a property is ideal as a main residence or as a holiday home and is a perfect investment. The real estate market in this area is very popular and those who are lucky enough to own a house here in a prime location can consider themselves very lucky and enjoy a lot of comfort.

Overview with the most expensive roads

Before we want to go into the most expensive streets in Hamburg with information such as location and prices per square meter: Here is an overview of the most expensive streets with the associated district. The purchase prices for properties here range on average between €11,800 and €25,000 per square metre.

Front lake road
Celtic Road
Lakeside Road
South lake road

Südliche Seestraße: Real estate with a view of the lake

While the north of Lake Starnberg convinces with its small town feeling and the community of Seeshaupt in the south with its family atmosphere, the east of Starnberg is considered a former residence of German nobility. And it is precisely here that the most expensive street in all of Bavaria is located, with its breathtaking view over the entire lake. Property prices in the southern lakeside street are around 25,000 euros per square metre.

The price per square metre here is

Maximum price up to 25,000 €/ sqm

Here you will find top adresses like:

Ammerland Sailing Club
Water rescue Ammerland

Southern lakeside road at Lake Starnberg (map):

Get a picture of the southern lake road yourself and explore the area in a virtual way!

Vordere Seestraße: Real estate at Lake Wörthsee

In contrast to the other streets, vordere Seestraße is located on Wörthsee, which, along with Lake Starnberg, is part of the “Fünfseenland” cultural landscape. Here are numerous beautiful properties in the midst of nature and directly on the northwest shore of the Wörthsee. Most of the properties offer a spacious property including a large garden. In addition, many have their own jetty including private lake and beach access. Here you can also moor a small boat. There is a small harbour including a beach bar in the vicinity.

The price per square metre here is

Maximum price up to 11,800 €/ sqm

Here you will find top adresses like:

Beach bar “Seaside resort
Ross Swamp
Hiking area PP Wörthsee

Vordere Seestraße at the Wörthsee (Map):

The area around the Wörthsee is beautiful and has a lot to offer. Make yourself a picture and explore the lake in a virtual way!

Keltenstraße: large plots in the middle of nature

Keltenberger Straße is located to the west of Lake Starnberg and is in the district of Pöcking. It stretches directly next to the Pöcking-Possenhofen sports club and is about two kilometres from the lake. On the Keltenstraße you will mainly find large estates with spacious properties and green areas. In addition, there is a small piece of forest southeast of the road. Due to this location near the lake and in the middle of nature, Keltenstraße is one of the most expensive streets on Lake Starnberg.

The price per square meter here is up to:

Maximum prices up to 12,450 € / m²

Here you will find top adresses like:

Sportclub Pöcking-Possenhofen eV

Celtic Road at Lake Starnberg (Map):

Seeuferstraße: Real estate with private lake access

The lakeside road is located on the eastern shore of Lake Starnberg and offers some numerous properties, which are highly sought after. In particular, the large plots and estates are especially popular and promise a lot of luxury. A further advantage is the private lake access, which offers some properties. Many properties are equipped with their own house jetty, so that you can access the lake from your own garden or even moor a small boat.

The price per square meter here is up to:

Maximum prices up to 22,550 € / m²

Here you will find top adresses like:

Holiday apartment on the lakeshore
Ambach Chapel
Farmhouse Hirn

Lakeside road at Lake Starnberg (map):

Why not explore the area yourself and take a virtual look at the surroundings!

Overview: Most expensive residential streets at Lake Starnberg

Sources: Image / Engel und Völkers / Lukinski

Street	City / Region, District	Maximum price / m²
Celtic Road	Lake Starnberg, Pöcking	12,450 Euro
Lakeside Road	Lake Starnberg, eastern shore Ammerland	22,550 Euro
South lake road	Lake Starnberg, eastern shore Ammerland	25,000 euros

Most expensive streets in Germany: real estate, districts & prices per square metre

Berlin, Munich, Sylt & Co: Germany’s metropolises are home to some of the most luxurious properties. Inselstraße in Berlin, Königinstraße in Munich and Südliche Seestraße on Lake Starnberg – only those who can afford it live here! Would you like to buy a property here? Find out everything about Germany’s most exclusive streets, what makes them so special and above all: how much a square metre costs here.

Most expensive streets in Germany: properties, districts and prices per square metre – List

Living at Lake Starnberg: villa, property, apartment

With a population of around 1.7 million, Munich is not only Germany’s third largest city, but also one of the country’s strongest economic centres. It is also famous for its high quality of life and the surrounding nature. Skiing in the Alps or hiking, as well as countless lakes for summer activities are in the immediate vicinity Thus, Lake Starnberg not only enjoys great demand as a holiday destination, but also as an attractive place to live.

Living at Lake Starnberg: Villa, property, apartment in Starnberg, Seeshaupt & Co.

Der Beitrag Lake Starnberg: most expensive roads & real estate in the five-lake region erschien zuerst auf ℄ Real Estates.

Limited partnership (KG): formation, liability, legal form, management, taxes

Laura — Thu, 25 Feb 2021 17:00:27 +0000

Limited partnership (KG) – The limited partnership is a German legal form founded by two or more persons and managed by at least one partner. The main feature of this legal form of business is the division of liability risk: at least one partner has unlimited liability and at least one partner has exclusive business liability with his contribution. Also, as extra advice: limited partnership real estate and limited partnership by shares. Back to all: Legal forms.

Limited partnership: formation, advantages and disadvantages

In the following, you will find out everything you need to know about setting up a KG. How do you become a partner in a KG? When is the limited partner liable? How is the general partner liable? What are the advantages? What are the disadvantages? How do I set up a company? What is a company? You will get an answer to all these questions and more – explained simply and quickly. Plus everything you need to know about taxes in Germany and real estate trading.

If you’re considering forming a limited partnership, the first thing you need to know about is the formation process: Who can form what exactly, when, and to how many… what are the differences and similarities between the various business legal forms? It is equally important to know the advantages and disadvantages of a KG: From profit distribution to saving taxes – an overview of the seven most important founding criteria for you.

What are the founding criteria?

Number of shareholders
Management
Foundation
Company name
Funding
Liability
Profit distribution

Learn everything important about it here! In addition, you will find all German types of companies and legal forms, as well as tips on how to start a company, including the special case of real estate GmbH, family foundation & Co.

Partnership KG: Management according to HGB

In the entrepreneurial world, there are many different forms of business you can choose from. They are roughly divided into two categories, namely sole proprietorship and companies, which in turn are divided into incomplete companies – these include dormant companies and BGB companies – and complete companies – partnerships, corporations and some more.

The limited partnership – in short: Kommandite or KG – is one of the so-called complete companies and, in contrast to the incomplete companies, is not subject to the German Civil Code (BGB) but to the German Commercial Code (HGB). As a partnership, the KG is an uncomplicated form of corporate law, as it can be founded informally and a minimum of only two founding members is required.

Other typical partnerships:

General partnership (OHG)
Limited Liability Company and Company Limited Partnership(GmbH & Co KG)
Limited Liability Company and Compagnie General Partnership(GmbH & Co OHG)

The limited partnership also appears to some extent as a share trading business, namely in the form of a partnership limited by shares (KGaA). This is no longer a partnership in the legal sense, but a corporation based on a stock corporation (AG), which has been given partnership characteristics…. Nevertheless, the special character of a traditional limited partnership shines through in a KGaA, which could make it an attractive legal form for start-ups who appreciate the combination of general partner and limited partner.

Read more about partnership limited by shares:

Partnership limited by shares (KGaA)

Formation process of the KG: From the number of shareholders to the distribution of profits

You would like to found a KG? No problem! The formation process of a limited partnership is quite simple: On the one hand, you need at least one other person to be able to form a limited partnership. Secondly, an informal partnership agreement is sufficient, insofar as no real estate is contributed to the partnership. Due to the extensive similarity of the formation process and formalities, the KG is often referred to as a variation of a general partnership.

KG formation from 2 persons: Tax ID, commercial register, company name

The formation of a limited partnership requires at least two natural – or legal – persons. A maximum number of permissible partners is not specified by law. The internal relationship determines the beginning of the partnership as the date contractually agreed between the partners. In the external relationship however the emergence of the KG is dated on the first activity in the name of the enterprise, at the latest thus with the obligatory entry into the trade register. The registration costs you on average about 200 to 300 euros and is usually carried out by a notary. You will receive a tax identification number – tax ID for short – from your local tax office in advance. The registration of the limited partnership is carried out by the trade office for a processing fee of approximately 10 to 65 euros. Only in the case of contributed real estate are further costs incurred for the notarial certification of the partnership agreement.

Since you are entered in the commercial register as a KG shareholder, you can officially trade under your name – just like a OHG shareholder. This means that your company has a company name, i.e. an official name, which you can freely design together with the other partners. It doesn’t matter whether it is a personal company, a real company, a fancy company or a mixed company… As long as the name is in the sense of the prohibition of misleading and has the suffix “KG”, almost anything is allowed.

Limited partner & general partner: A question of liability

What is a limited partner and general partner? This is a question many people ask themselves when they first hear about the special characteristics of a limited partnership. This is because, unlike all other partnerships, the partners in a limited partnership are clearly divided into general partners and limited partners. Therefore, a single individual or legal entity can never be a general partner and a general partner at the same time.

The general partners of a KG are called general partners. They bear the same liability risk as the partners of a general partnership: They are liable with their business and private assets without limitation, directly and jointly and severally. Also their rights and obligations as partners correspond to a large extent to those of OHG partners – only the profit and loss distribution takes place differentiated.

The partial partners of a KG are called limited partners. From the time of registration of the company in the commercial register, their liability is limited to the contribution entered there, the so-called liability sum. Between entry into the partnership and registration, however, the same liability risk exists for limited partners as for general partners: For this period, from a legal point of view, there are only fully liable partners. So if something goes wrong and the limited partnership falls into arrears and financial difficulties, you as a future limited partner – even in the event of wrong decisions by your co-partner(s) – must assume unlimited liability for the partnership’s debts with your private assets.

Management with full liability, collusion & control

Management is a matter for the general partner. As a rule, limited partners cannot participate in decision-making with regard to ordinary business activities unless such joint management has been expressly stipulated in the partnership agreement. In the case of sole management by a limited partner, on the other hand, it is disputed whether and how the sole management authority once granted to the limited partner can be withdrawn again by means of a shareholders’ resolution. In order to avoid ambiguities and disputes, limited partners are therefore usually excluded from management activities.

Legal transactions are also subject to the sole power of representation of the general partners. This means that each fully liable partner may perform legal acts on behalf of the limited partnership in full and without restriction. Deviations – such as joint representation – are contractually possible, provided that all partners agree to this. Only in the case of actions that go beyond the ordinary operation of the commercial business do you, even as a general partner, have to consult with your co-partners. Here, the limited partners may also have a say and make use of their right to object.

Since the management authority and the power of representation give the individual general partners a great deal of freedom to make decisions, each partner – whether a general partner or a limited partner – may at any time personally obtain information about the affairs of the company, inspect the commercial books or draw up a balance sheet from the company papers. This ensures that none of the partners acts behind the backs of the others and that disagreements are adressed personally.

Financing, profit & loss distribution

The financing of your business is entirely up to you, so you can theoretically do without any start-up capital at all. However, it is advisable to have some reserves and to draw up a financing plan in order to be financially prepared in case of unpleasant surprises.

In contrast to the OHG, the distribution of profits in the case of a KG is not generally carried out at 4 percent of the capital share plus additional profit according to heads; instead, the additional profit is distributed “in reasonable proportion” in accordance with the statutory regulations. This also applies to the distribution of losses. In order to prevent disputes, clear regulations should be stipulated in advance in the partnership agreement.

In addition, profit shares are generally credited to the capital account until they correspond to the contribution entered in the commercial register. All profits in excess of this are regarded as liabilities of the KG to its limited partners and are either credited outside the capital account or paid out directly.

Rights of the limited partners: objection, control, profit & Co.

The rights of the partially liable partners secure your position in the KG despite the distribution of the liability risk among the general partners: The right to object comes into play in the case of actions that are extraordinary for the company… the right to control has the effect of keeping you informed about all matters…. Profits are distributed appropriately and you have the same rights of termination as a general partner.

Overview of the rights of limited partners:

Right of objection
- In the event of unusual operations
Right of control
- For corporate matters
Profit share
- 4 % of its capital share
- Additional profit in reasonable proportion
Right of termination
- 6 months’ notice to the end of a financial year

Duties of the limited partners: mandatory contribution, liability & loss

As a limited partner, in many cases you cannot make your own decisions and are dependent on the guidance of the managing general partner in day-to-day business. However, especially with regard to liability issues and the capital contribution, it is important that you are familiar not only with your rights but also with your obligations as a limited partner.

Duties of limited partners at a glance:

Capital contribution
- Mandatory contribution may differ from liability amount
Liability before registration
- Unrestricted
- Directly
- Solidarity
Liability after registration
- Up to registered contribution (liability amount)
Loss share
- In proportion

Advantages: Flexibility of action, capital growth, liability risk at choice.

After presenting the typical characteristics of a limited partnership, you have certainly already recognized the advantages that this legal form offers you: The formation is relatively uncomplicated and you do not need any start-up capital. You can become active in the team and maintain your independence as a general partner or, as a limited partner, let others manage the day-to-day business without any restrictions on turnover. This offers you in both cases an attractive flexibility of action at relatively low costs.

In addition, as a limited partner you have the support of your fully liable co-founder(s): you make all extraordinary decisions together, while the general partners bear the decisive liability risk jointly and severally. By taking on additional limited partners, the capital base can also be increased quickly and easily, which is why banks are usually very positive about granting loans to limited partnerships.

Fast and uncomplicated foundation
Flexible share capital
Attractive flexibility of action in the team
No turnover limit
Team decisions for exceptional transactions
Joint and several liability of the general partners
Low liability risk for limited partners
Fast and easy capital growth
High credit rating

Disadvantages: Full risk for general partners, registration requirement and HGB.

The disadvantages that the formation of a KG can bring with it are also quickly identified: On the one hand, you do not have one hundred percent decision-making power and must agree with your partner staff in special cases. Nevertheless, in case of doubt you must be fully and completely liable – even privately! even if you were not responsible for the losses. In addition, the limited partners participate as partial partners also only up to the height of the respective liability sum in the partnership debts. Thirdly, as a KG you are obliged to be entered in the commercial register and are no longer subject only to the BGB. Not least: Since the success of a limited partnership is largely tied to the teamwork and cooperation of the individual partners, internal disputes or serious breaches of trust can result in the dissolution of the partnership, and succession arrangements must be expressly set out in the partnership agreement.

Consent requirement in special cases
Full liability (incl. private assets) for general partners
Loss participation of the limited partners only up to the amount of liability
Obligation to register in the commercial register
Validity of the HGB
Endangering the continued existence of the company due to disagreements within the team
Fixing the succession regulations in the shareholder agreement

Evaluation: Active & passive with team spirit to the goal

After comparing the advantages and disadvantages, the following emerges: A limited partnership offers a wide range of opportunities to participate directly or indirectly in a company. It is therefore suitable both for characters who like to make their own decisions and are prepared to accept a certain amount of risk for their goals…. as well as for those who shy away from the entrepreneurial risk and strive for capital growth without great personal effort. Common requirement: To join a KG you should be a team player and be able to respect and accept the opinions and advice of others.

Immobilien KG: asset management, family pool & Co

You don’t think the idea of a limited partnership is a bad idea at all, and now you’re wondering how to combine your partnership with the real estate industry? From real estate agents to asset management companies and family pools. All essential information on real estate partnerships, real estate GbR and real estate KG for you in a nutshell.

Small tip: When acquiring and/or managing real estate, make sure that all details are clearly stated in the partnership agreement. Due to the principle of joint, unlimited and direct liability, you should also make sure that your managing partners are persons with comparable creditworthiness – otherwise there could be difficulties with financing and creditworthiness.

Variant 1: Real estate agent with business licence

If you want to become a self-employed real estate agent, it’s not that easy. The profession of real estate agent is subject to the trade obligation and is not one of the liberal professions. This means that in order to be able to pursue this activity, you must first apply to the trade licensing office for permission and hope for a positive light. The official permit is required by law, for example to be able to assess your reliability in advance.

Real estate agent OHG, GbR & KG

Partnerships can also operate as real estate agents. However, without their own legal personality, OHGs, GbRs and KGs must obtain an official permit for each individual managing partner. In addition to the application form for permission, further documents must also be submitted. These include:

A police clearance certificate – available on request from the Residents’ Registration Office;
An extract from the Trade Central Register – available on request from the Ordnungsamt;
A tax clearance certificate – available on request from the tax office;
A certificate of no current insolvency proceedings – available on request from the local court;
A certificate of missing entries in the debtors’ register – available on request from the local court.

A certificate of competence can also be provided on a voluntary basis.

Variant 2: Asset-managing partnership

If you want to be active in the area of surplus income – i.e.: income from non-self-employed work, capital assets, renting and leasing or other income – an asset-managing partnership could be just right for you. Here you can typically either use the legal form of a GbR or fall back on trading companies regulated in the HGB such as the OHG or KG. Mixed forms such as the GmbH & Co KG are also conceivable in principle, but mean further regulations and requirements.

Participation, say & tax advantages

An asset-managing partnership makes sense if several real estate investors want to manage their real estate holdings jointly. The aspect of ensuring succession in the event of inheritance is also interesting here. The partnership agreement determines how much say the individual partners have – decisions are often made on the basis of shares, but even partners with a small shareholding can gain a dominant voting right – for example, if they have enormous expertise, professionalism or experience.

Tax advantage of such an arrangement? The capital-forming partnership is not the same as the tax object: each partner is taxed individually and all income taxes as well as taxes from inheritance, sale or gratuitous transfer of partnership shares must be reported by each partner individually for tax purposes.

Asset-managing family company / family pool

The limited partnership in particular is ideally suited for the management of family assets. The internal family management of the joint real estate portfolio – the so-called family pool – is therefore advantageous, as the income generated in this way is not regarded as trade income, but as private income from letting and leasing. Thus the trade tax is omitted completely and also the fee-requiring registration with the trade office is settled. In the case of corporations, however, real estate is part of the business assets and as such is subject to trade tax.

In addition, compulsory membership of the Chamber of Industry and Commerce (IHK) with no trade tax liability is avoided and you can put your money to work without it flowing to the IHK as a contribution payment. Further taxes can be saved if the property is held in company ownership for at least ten years, because then the sale is no longer taxed with income tax.

Small tip: Due to the limited liability of the limited partners, minor family members can also participate in the family partnership, while the parents as general partners bear the full risk and therefore also make all ordinary business decisions.

Taxes for KG shareholders: ESt, USt & KSt

As a KG shareholder, you do not have to seriously think about a few types of tax, because without the income from a trade, trade tax does not apply to you. However, there is a uniform and separate determination of the profits, which forms the basis for the income tax assessment of the KG partners. Profit shares are evaluated accordingly as incomes from trade. The tax law provides that in addition to the income tax of each partner – or the corporate income tax of each legal entity – further duties for turnover tax must be paid, insofar as the limited partnership does not only carry out tax-exempt sales.

Income tax (ESt)
Value added tax (VAT)
If applicable, corporate income tax (KSt)

You can find out what taxes you can expect with a real estate corporation here:

Save taxes on real estate

Limited partnership – For whom is it worthwhile?

If you like to work in a familiar team and don’t want to overcome any major bureaucratic hurdles, you can get started quickly and easily as a limited partner. You can decide for yourself in advance whether you want to act as general partner and thus also bear the full risk, or whether you prefer to sit back as a limited partner while you let your money work for you. Great freedom of choice versus capital growth with limited liability – a KG makes sense above all for start-ups who are prepared to take on a great deal of entrepreneurial responsibility or are looking for a nice additional income without having to contribute significantly to the company.

From a real estate point of view, a KG is particularly worthwhile for beginners who would prefer to invest their capital directly in property management or deal in real estate instead of laying down the share capital for a corporation. For families, the limited partnership offers an attractive corporate legal form to manage the joint real estate portfolio in a cost-effective and uncomplicated manner. Another plus: even underage children can be integrated into the family pool as limited partners.

Limitation of liability, yes or no? KG & GmbH & Co KG in comparison

Many prospective business founders are faced with the question of whether they would like to set up a limited partnership (KG) or whether they would prefer to set up a limited liability company (Gesellschaft mit beschränkter Haftung & Compagnie Kommanditgesellschaft, GmbH & Co KG). The two forms of company law are very similar in many respects – however, one significant difference lies in the question of liability. In the case of a limited partnership, the general partner assumes the full risk and is liable for both business and private matters. With a GmbH and Co KG it looks different: Here, the general partner is not a natural person, but a GmbH, i.e. a limited liability company. As a result, his private assets remain unaffected and the general partner is only liable in business terms.

You can find out more about the GmbH & Co KG here:

Limited Liability Company & Compagnie Limited Partnership(GmbH & Co KG)

Learn for free: Start a company & legal forms

Besides the limited partnership (KG), there are a few other alternative types of companies that might be interesting for you as a founder! Want to learn more about starting a business? Learn more about share capital, taxes and the advantages and disadvantages of the different types of companies.

Here you will find all the legal forms that can be chosen as a founder in Germany and a guide with a checklist:

Legal forms: List
Founding a company: Procedure, costs and overview

Legal forms: List

Legal forms – What types of company are there? If you want to start your first company, then choosing the ideal legal form is one of the first steps in the process of setting up a company. Whether it’s a special real estate company or a start-up, I’ve summarized all the types of companies in Germany for you here.

Legal forms: List

Company types in detail:

Starting a company: Procedure, costs and checklist

Founding a company (real estate) – You want to found your first company? Requirements for you as a founder, share capital, shareholder agreements, costs for the foundation, legal forms and checklists. This sounds complicated for beginners, but it is actually quite simple. The process of founding a company is usually relatively the same. I have summarized the foundation here once in simple steps, for you. Learn how to start your own business. After the great guide to all legal forms or types of companies, today a detailed look at the establishment of a (real estate) company for beginners.

Form a company

Der Beitrag Limited partnership (KG): formation, liability, legal form, management, taxes erschien zuerst auf ℄ Real Estates.

General partnership (OHG): formation, liability, legal form, management, taxes

Laura — Wed, 24 Feb 2021 11:58:58 +0000

General partnership (OHG) – The general partnership is a German legal form founded by two or more persons and managed by at least one partner. As the name suggests, it is primarily focused on commercial enterprise and is thus subject to the German Commercial Code (HGB) in the legal sense. Back to all: Legal forms.

General partnership: formation, advantages and disadvantages

In the following, you will find out everything you need to know about setting up a general partnership. How do you become a partner in a general partnership? What are the differences between incomplete and complete companies? What are the advantages? What are the disadvantages? How do I set up a company? What is a company? What taxes are there in Germany for an OHG? You will get an answer to all these questions and more – explained simply and quickly. Plus everything you need to know about taxes and real estate trading.

If you’re considering forming a general partnership, the first thing you need to know about is the formation process: Who can form what exactly, when, and to how many… what are the differences and similarities between the various forms of business law? It is equally important to know the advantages and disadvantages of a general partnership: From profit distribution to saving taxes – an overview of the seven most important founding criteria for you.

What are the founding criteria?

Number of shareholders
Management
Foundation
Company name
Funding
Liability
Profit distribution

Partnership OHG: Management according to HGB

The general partnership – OHG for short – is one of the so-called complete companies and, in contrast to the incomplete companies, is not subject to the German Civil Code (BGB) but to the German Commercial Code (HGB). As a partnership, the general partnership is an uncomplicated form of corporate law, as it can be founded informally and a minimum of only two founding members is required.

Other typical partnerships:

Limited partnership (KG)
Limited Liability Company and Company Limited Partnership(GmbH & Co KG)
Limited Liability Company and Compagnie General Partnership(GmbH & Co OHG)

Formation process of the OHG: From the number of shareholders to the distribution of profits

You would like to found a general partnership? No problem! The formation process of a general partnership is quite simple: Firstly, you need at least one other person to be able to form a general partnership. Alternatively, you are already a co-founder of a partnership under civil law (GbR) and you have decided to convert the incomplete partnership into a general partnership. Secondly, an informal partnership agreement is sufficient insofar as no real estate is contributed to the partnership.

OHG formation from 2 persons: Tax ID, commercial register, company name

The formation of a general partnership requires at least two natural – or legal – persons. A maximum number of permissible partners is not specified by law. The internal relationship determines the beginning of the company as the date contractually agreed between the partners. In the external relationship, however, the formation of the general partnership is dated on the first activity on behalf of the company, i.e. at the latest with the binding entry in the commercial register. The registration costs you on average about 200 to 300 Euros and is usually carried out by a notary. You will receive a tax identification number – tax ID for short – from your local tax office in advance. The registration of the OHG is carried out by the trade office for a processing fee of approximately 10 to 65 Euros. Only in the case of contributed real estate are further costs incurred for the notarial certification of the partnership agreement.

As you are registered in the commercial register as a partner in a general partnership (OHG), you can officially operate your business, unlike a partner in a civil law partnership (GbR) or a sole trader. This means that your business has a company, i.e. an official name, which you can freely design together with the other partners. It doesn’t matter whether it’s a personal company, a real company, a fancy company or a mixed company… As long as the name is in the sense of the prohibition of misleading and has the suffix “OHG”, almost anything is allowed.

Individual management, agreements & procuration

Although it is possible to manage a general partnership jointly with some or all of the partners by agreement, all partners usually have sole management authority and generally make their decisions alone. This power of sole management applies to all normal business activities such as purchasing and selling, hiring personnel, accepting bills of exchange, and more.

The sole power of representation also applies to legal transactions. This means that each shareholder may perform legal acts on behalf of the general partnership in full and without restriction. Deviations – such as joint representation – are contractually possible, provided that all partners agree to this. Only in the case of extraordinary legal transactions do you have to consult with your co-partners. This is the case, for example, when taking on a silent partner, but the purchase or sale of real estate also requires the prior consent of all partners. Furthermore, the managing partners may only jointly appoint a proxy – each of them is individually entitled to revoke the proxy.

Since the sole power of management and the sole power of representation give the individual partners a great deal of freedom to make decisions, each partner may at any time personally obtain information about the affairs of the company, inspect the commercial books or draw up a balance sheet from the company papers. This ensures that none of the partners acts behind the backs of the others and that disagreements are adressed personally.

Financing, Liability & Profit Distribution

The financing is entirely at your discretion, so you can theoretically do without any start-up capital. However, it is advisable to have certain reserves and to draw up a financing plan in order to be financially prepared in case of unpleasant surprises. The company risk is borne jointly by all partners and they are liable for both business and private matters. If something goes wrong and the general partnership defaults on payments and gets into financial difficulties, you must – even in the case of wrong decisions by your co-partner(s) – take full responsibility with your private assets.

In contrast to the GbR, the distribution of profits in the case of a general partnership does not take place in equal parts, but in dependence on the value of the contribution made. According to the legal regulations, each partner receives 4 percent of his capital share – contributions and withdrawals taken into account – and only the remaining surplus profit is actually distributed according to heads. Deviating regulations can be laid down in the shareholders’ agreement.

Shareholders’ rights: withdrawal of capital, control, termination & Co

The rights of the partners secure your position in the general partnership despite the joint liability risk: The individual business authority only applies within a certain, customary framework… the right of control means that you are informed about all matters… Contributions and withdrawals are fairly offset and even in case of losses you can secure a part of your capital contribution.

Overview of shareholders’ rights:

Individual management authority
- In the case of normal operations
- On revocation of procuration
Consent requirement
- In the case of exceptional legal acts
- In the event of the appointment of an authorised signatory
Sole power of representation
- For all legal transactions
Right of control
- For corporate matters
Reimbursement of expenses
- In the case of expenditure from private funds
Capital withdrawal
- 4 % of your capital share (independent of losses)
Profit share
- 4% of your capital share
- Additional profit according to heads
Right of termination
- 6 months’ notice to the end of a financial year
Liquidation share
- According to your capital share

Duties of shareholders: non-competition clause, loss & liability

As a general partner, you can make your own decisions in many cases, similar to a sole proprietor, and are not dependent on the approval of your fellow partners in day-to-day business. However, there are some cases in which you cannot avoid the approval of the others. It is therefore important that you are familiar not only with your rights but also with your obligations as a partner: the obligations of the partners primarily safeguard the general partnership itself.

Duties of shareholders at a glance:

Capital contribution
- Cash contribution
- Real assets
- Right values
Non-compete
- Business in the same line of trade
- Personal liability in similar companies
Loss share
- By heads
Liability
- Unrestricted
- Directly
- Solidarity

Advantages: No share capital, high credit rating, joint and several liability.

After presenting the typical characteristics of a general partnership, you have certainly already recognized the advantages that this legal form offers you: The formation is relatively uncomplicated and you do not need any start-up capital. You can be active in a team without losing your independence or having to operate with limited turnover and still have the support of your co-founder(s): You make all extraordinary decisions together, bear the liability risk jointly and thus obtain a good credit rating vis-à-vis banks and other financial institutions. The distribution of profits is a percentage of your capital share and only the excess profit is distributed according to heads. In this way, the larger depositors are fairly rewarded for their financing and the associated risk.

Fast and uncomplicated foundation
Flexible share capital
No turnover limit
High credit rating
Profit distribution according to capital share and additional profit according to heads
Liability risk in the team

Disadvantages: Full liability, registration requirement & HGB

The disadvantages that the formation of a general partnership can bring with it are also quickly identified: On the one hand, you do not have one hundred percent decision-making power and must agree with your partner staff in special cases. Nevertheless, in case of doubt, you must be fully and completely liable – even privately! – even if you were not responsible for the losses. Thirdly, as a general partnership you are obliged to register in the commercial register and are no longer subject only to the BGB. Last but not least: Since the success of a general partnership is largely tied to the teamwork and cooperation of the individual partners, internal disputes or serious breaches of trust can result in the dissolution of the company.

Consent requirement in special cases
Full liability (incl. private assets)
Obligation to register in the commercial register
Validity of the HGB
Endangering the continued existence of the company due to disagreements within the team

Evaluation: Acting & sticking in solidarity as a team

After comparing the advantages and disadvantages, it becomes clear: If you like to act in a small and familiar team in order to trade jointly and do not want to overcome any major bureaucratic hurdles, you can get started quickly and easily as a general partnership. Profits are shared fairly and losses are borne jointly, so that business with manageable risk is particularly suitable as an objective. In addition, an OHG makes sense for start-ups that do not have the necessary share capital for a corporation and/or would like to lift the turnover restriction of a GbR.

Real estate OHG: change of legal form, asset management & Co

You don’t think the idea of a general partnership is a bad idea at all, and now you’re wondering how to combine your partnership with real estate? From form change tricks and private contributions to corporations to real estate brokers and asset management companies. All essential information on real estate partnerships, real estate GbR and real estate KG for you in a nutshell.

Variant 1: Save taxes through change of legal form trick

As an individual, you would like to contribute your property to a limited liability company (LLC) or other corporation, but the tax levies are too high for you? Then you should consider transferring your property to a partnership. The advantage: registered partnerships can be easily converted into corporations by means of a change of form and you can save the real estate transfer tax!

Change of legal form to a registered partnership

Of course, you can also first form a partnership under civil law (GbR) and convert your property into 100 percent GbR shares as a one hundred percent share. The next step would then be the change of legal form to a general partnership (OHG) with entry in the commercial register – this turns the GbR into a full company and, above all, into a registered partnership, which is the basic prerequisite for the conversion into a GmbH. Either way: You need another person for the foundation, who temporarily joins the company without any deductible.

Change of legal form to a corporation after 5 years

The change of legal form to a GmbH is again tax-free in terms of the identity of the legal entity, so that you remain exempt from real estate transfer tax and can still transfer your private property to a corporation. You only have to wait until the five-year lock-up period has expired, because otherwise taxes will still be due retroactively in accordance with the Real Estate Transfer Tax Act (GrEStG). If everything goes smoothly, you are still 100 percent owner and your co-founder can leave the GmbH without any problems.

Variant 2: Real estate agent with business licence

Real estate agent OHG, GbR & KG

A police clearance certificate – available on request from the Residents’ Registration Office;
An extract from the Trade Central Register – available on request from the Ordnungsamt;
A tax clearance certificate – available on request from the tax office;
A certificate of no current insolvency proceedings – available on request from the local court;
A certificate of missing entries in the debtors’ register – available on request from the local court.

A certificate of competence can also be provided on a voluntary basis.

Variant 3: Asset-managing partnership

Participation, say & tax advantages

Taxes for OHG shareholders: ESt, USt, GewSt & KSt

As a partner in a general partnership, you need to know about some types of tax, because when you set up your business, you receive income from your trade and must of course also pay tax on this income. Tax law stipulates that in addition to the income tax of each partner – or the corporate income tax of each legal entity – further sales tax contributions must be paid, insofar as the OHG does not only carry out tax-free sales. For commercial enterprises with an annual income of more than 24,500 Euros, trade tax is also due.

Income tax (ESt)
Value added tax (VAT)
If applicable, trade tax (GewSt)
If applicable, corporate income tax (KSt)

You can find out what taxes you can expect with a real estate corporation here:

Save taxes on real estate

Conclusion: General partnership – for whom is it worthwhile?

If you are prepared to join forces with other trustworthy people in order to start your own business quickly and easily, you do not need enormous financial reserves and also pay relatively little tax on your profits. An OHG is therefore ideally suited to young entrepreneurs with an eye to the future who want to take their lives into their own hands, not just dream of self-fulfilment and do not want to wait until they have saved up the necessary start-up capital.

In real estate terms, a general partnership is particularly worthwhile for beginners who would prefer to invest their capital directly in property management or deal in real estate instead of setting up the share capital for a corporation. For BGB partners, a general partnership often means the next step towards business success – if only to reduce the liability risk. From a certain turnover size, however, you should consider converting your trading business into a GmbH or contributing it as a contribution in kind to an existing GmbH.

Limitation of liability, yes or no? OHG & GmbH & Co OHG in comparison

Some prospective business founders ask themselves whether the formation of a general partnership (OHG) really suits their future plans or perhaps a limited liability company & Compagnie Offene Handelsgesellschaft (GmbH & Co OHG) would be better. There are many similarities between the two partnerships – but one significant difference lies in the liability issue. In the conventional OHG, all partners share the full risk and are jointly and severally liable, i.e. for business as well as private purposes. With a GmbH and Co OHG it looks differently: Here, the personally liable partner is not a natural person, but a GmbH, i.e. a limited liability company. As a result, his private assets remain unaffected and the partner is only held liable in business terms.

You can find out more about the GmbH & Co OHG here:

Limited Liability Company & Compagnie General Partnership(GmbH & Co OHG)

Commercial enterprise instead of small business: OHG & GbR in comparison

Many prospective entrepreneurs are faced with the question of whether they want to set up a civil law partnership (GbR) or whether they would prefer a general partnership (OHG). The two legal forms of business are very similar in many respects – the background, i.e. the motivation for founding, is the easiest way to find out which legal form is better suited to your entrepreneurial goals. Do you want to run a small business and expect manageable turnover? Then you are on the safe side with the GbR. Do you explicitly want to run a commercial enterprise and do not want to limit your turnover? Then the OHG is a better fit!

You can find out more about civil law partnerships here:

Civil law partnership (GbR)

Learn for free: Start a company & legal forms

Besides the general partnership (OHG), there are a few other alternative types of companies that could be interesting for you as a founder! You want to learn more about starting a business? Learn more about share capital, taxes and the advantages and disadvantages of the different types of companies.

Here you will find all the legal forms that can be chosen as a founder in Germany and a guide with a checklist:

Legal forms: List
Founding a company: Procedure, costs and overview

Legal forms: List

Legal forms: List

Company types in detail:

Starting a company: Procedure, costs and checklist

Form a company

Der Beitrag General partnership (OHG): formation, liability, legal form, management, taxes erschien zuerst auf ℄ Real Estates.