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Old 03.09.2016, 18:52
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Starting an own company while working 100%

Hi Everyone

I am living in Switzerland with a B Permit together with my girlfriend and I would like to start a Hair and Beauty Salon Business.

Currently I am working 100% pensum as an employee and earn a nice salary and I have heard that if I have a company I can deduct the costs of the company from my personal taxes. How does that work? Let's say if I rent a place for my business for 12 000 CHF per year and I would pay 20 000 CHF taxes a year I would only have to pay 8 000 CHF taxes plus the taxes for the profits my business makes?

Is it legal to employ my girlfriend (soon to be wife) in my own company?

Thanks for your answers.
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Old 03.09.2016, 19:25
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Re: Starting an own company while working 100%

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Hi Everyone

Let's say if I rent a place for my business for 12 000 CHF per year and I would pay 20 000 CHF taxes a year I would only have to pay 8 000 CHF taxes plus the taxes for the profits my business makes?

Thanks for your answers.
Lol.. Do you really think if you rent a place for 25k the tax office will reimburse you 5k?
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Old 03.09.2016, 19:45
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Re: Starting an own company while working 100%

@Ace07
nothing wrong with aiming high! There are other threads on this forum about starting a business, too. And quite a lot of help by googling "starting a company in switzerland".

It's well worth finding out all the essential steps beforehand. Here, for example, is a list of groups that help students to understand all the legal paperwork, the necessary insurances and how the taxes workd, so they can get their business up and running. Some of these places also advise non-students.
https://www.ethz.ch/students/en/care...a-company.html

Last edited by doropfiz; 03.09.2016 at 19:45. Reason: typo
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Old 04.09.2016, 12:51
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Re: Starting an own company while working 100%

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... if I have a company I can deduct the costs of the company from my personal taxes. How does that work?

Is it legal to employ my girlfriend (soon to be wife) in my own company
When you say 'company' it usually means GmBh/SARL or AG/SA, in both cases the 'company' is a separate legal entity and pays its own taxes.

The company can hire your GF.
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Old 04.09.2016, 12:59
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Re: Starting an own company while working 100%

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Hi Everyone

I am living in Switzerland with a B Permit together with my girlfriend and I would like to start a Hair and Beauty Salon Business.

Currently I am working 100% pensum as an employee and earn a nice salary and I have heard that if I have a company I can deduct the costs of the company from my personal taxes. How does that work? Let's say if I rent a place for my business for 12 000 CHF per year and I would pay 20 000 CHF taxes a year I would only have to pay 8 000 CHF taxes plus the taxes for the profits my business makes?

Is it legal to employ my girlfriend (soon to be wife) in my own company?

Thanks for your answers.
If your self employed, you taxable earnings will drop by 12,000, your tax savings may be 3,000. However if your business produces ZERO income & just expenses the tax office may decide it's a hobby & not a business.
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Old 04.09.2016, 18:57
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Re: Starting an own company while working 100%

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Hi Everyone

I am living in Switzerland with a B Permit together with my girlfriend and I would like to start a Hair and Beauty Salon Business.

Currently I am working 100% pensum as an employee and earn a nice salary and I have heard that if I have a company I can deduct the costs of the company from my personal taxes. How does that work? Let's say if I rent a place for my business for 12 000 CHF per year and I would pay 20 000 CHF taxes a year I would only have to pay 8 000 CHF taxes plus the taxes for the profits my business makes?

Is it legal to employ my girlfriend (soon to be wife) in my own company?

Thanks for your answers.
You have been given wrong information. The taxman in Switzerland will not let you off paying tax just because you rent business premises. I have been in exactly your position and speak from experience.
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Old 03.10.2016, 11:08
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Re: Starting an own company while working 100%

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If your self employed, you taxable earnings will drop by 12,000, your tax savings may be 3,000. However if your business produces ZERO income & just expenses the tax office may decide it's a hobby & not a business.
If you really become parttime self-employed (and this does exclude GmbH, AG, etc., because than you are again employed, but in your own company) you can deduct your loss in the first few years, but the tax office will consider if there is any chance of succeeding within a few years, otherwise it's really just a hobby - and with no income from that business at all, you won't be able to deduct anything
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