My own little business :) - Page 4

StP · #61 21.05.2010, 13:28

Hello everyone.

I've been reading this thread because I too am thinking of setting up a 'home business' but I can't work out if I would be classed as a hobby business or not.

I'm thinking of setting up as a "Virtual PA/Secretary". I've got 20 plus years extensive PA experience in the UK in international firms (PA/travel arrangements etc) and have been in Switzerland since February. Am learning the language here but not quick enough to reach the level to be employed. I have a B Bewilligung as I am "employed" 50% in my partner's firm to do all his admin.

My question is, if I am already employed in the capacity of admin/PA, can I then claim my business (with me as sole employee) is a hobby when it is the same line of work, or do I have to register as einzelfirma first?

Sorry for the lengthy post

StP

	Quote:	beta_ch
	I have been in Basel, Switzerland for 12 years. I am British with a C-Permit. Two years ago I set up my own hobby business selling ASICS running shoes on the Internet. Before I started run71.com, I has a consultation with an accountant about the various options open to me to ensure I was completely legal income- and tax-wise. I was advised that unless you are turning over a significant amount of money (I dont remember the exact figure, but it was more than CHF 50,000 per year) OR your business costs are high, then it is not worth your while creating ANY kind of company. In the first year I turned over about CHF 5000. I declared this on my tax return, clearly indicating my costs (which included a new computer, web-store software etc, etc). Making the "hobby business" basically a loss-making venture, to the tune of about CHF 1000. When I got my final tax bill for the year, they returned the paperwork for run71 with the comment (in German) "hobby businesses are not considered for tax purposes" - and completely ignored what I had submitted. Since then I have a new tax consultant, and he recently told me that if a hobby business generates TURNOVER of less than CHF 5000 a year, OR profit of less than CHF 500 a year, there is no compulsion to declare it on your tax return. My turnover is now more than CHF 5000 per year, but of course, all my marketing expenditure can be off-set against profit, so at the moment I am able to justify not declaring it again on my tax return. Think before you register for MWST. If you do so, you are compelled to charge your customers an extra 7.6% for your service/products. Since my customers are private individuals, it would only make the shoes more expensive, and/or reduce my profit margin. It only really makes sense to register for MWST (which is free and very simple) if you are selling services direct to other businesses which are MWST registered.

Goldtop · #62 22.05.2010, 21:03

	Quote:	StP
	Hello everyone. I've been reading this thread because I too am thinking of setting up a 'home business' but I can't work out if I would be classed as a hobby business or not. I'm thinking of setting up as a "Virtual PA/Secretary". I've got 20 plus years extensive PA experience in the UK in international firms (PA/travel arrangements etc) and have been in Switzerland since February. Am learning the language here but not quick enough to reach the level to be employed. I have a B Bewilligung as I am "employed" 50% in my partner's firm to do all his admin. My question is, if I am already employed in the capacity of admin/PA, can I then claim my business (with me as sole employee) is a hobby when it is the same line of work, or do I have to register as einzelfirma first? Sorry for the lengthy post StP

If you say that your job is a hobby, then you cannot deduct any expenses.

The topic "Einzelfirma" has been already discussed extensively in this Forum.

beta_ch · #63 22.05.2010, 22:56

StP - If I understand you correctly, then it is very simple.

There is nothing to stop you working as a PA (albeit 50% of the time for your partner) and also having a hobby business performing PA work.

Your main issue will be when your "hobby business" starts generating *profit* for more than CHF 4350 or so (check the exact figure with your tax advisor, but I think this is what mine told me). When profit is less than CHF 4350 per year, then you do not need to declare it on your tax return, but if it is more, then you are obliged to declare it.

StP · #64 23.05.2010, 19:27

Thanks for the advice. Will speak to my tax advisor.

Thx
StP

indian25 · #65 28.05.2010, 09:57

Hello,
I was in geneva and Interlaken lasy week.
I saw in a flea market, that ppl were buying used shirts at 5-6 CHF.
In india, at close to that price we can get brand new shirts.
How about importing these and selling in Swiss?
Regards,
Gill
India

beta_ch · #66 28.05.2010, 11:14

My first reaction would be to want to compare the quality of the shirts. Were the people in Interlaken buying second hand Lacoste shirts for CHF 5-6 or were they just generic ones?

In general, price is not the main driver for Swiss buyers. This is why you see so many people talk about "Swiss Made" and "Swiss Quality". It is fundamental to the Swiss culture. You should bear in mind that Switzerland is a relatively rich country, and so only a very small percentage of Swiss people are driven by price alone. Swiss consumers will be looking for (i) quality, (ii) brand recognition, and (iii) price (in that order).

If you can supply high-quality T-shirts (i.e. well made, cotton-lycra mix, styled -rather than box-cut), then it may be an interesting proposition.

I've been selling (ASICS running shoes) online in Switzerland for 3 years from my store, run71, and although I *do* offer low prices, I do not believe that price is a big barrier for many of my customers. The feedback I receive is more about getting the latest styles, colours, rather than a cheaper product.

Charlie R. Soles · #67 28.05.2010, 13:01

	Quote:	beta_ch
	In general, price is not the main driver for Swiss buyers. This is why you see so many people talk about "Swiss Made" and "Swiss Quality". It is fundamental to the Swiss culture. You should bear in mind that Switzerland is a relatively rich country, and so only a very small percentage of Swiss people are driven by price alone. Swiss consumers will be looking for (i) quality, (ii) brand recognition, and (iii) price (in that order).

That is the Swiss market in a nutshell, quality counts, price is of secondary importance.

Spacey · #68 28.05.2010, 14:04

	Quote:	Charlie R. Soles
	That is the Swiss market in a nutshell, quality counts, price is of secondary importance.

Not sure I agree. We run a small shop which has a mix of goods. Swiss customers come in and complain about us stocking Chinese goods, and so we point them to the range of Swiss products at three times the price and then they buy Chinese.

The only customers who are indifferent to price seem to be Russian tourists.

SophieNam · #69 28.05.2010, 14:06

Brilliant thread.. very useful information for me. Thanks all!