Everything that matters about sole proprietorship for architecture firms in Wattwil
Swiss accounting law (art. 957 ff. of the Code of Obligations) sets a precise frame, yet day-to-day practice often stays fuzzy. This guide walks through what actually matters for a business based in Wattwil.
Choosing the structure: Sàrl, SA or sole proprietorship
Partners from day one? A shareholders' agreement settles what the articles do not: exit, deadlock, valuation. Signing it while everything is fine costs an evening; negotiating it in a crisis costs the company.
On the sole proprietorship side, the first financial year may be longer or shorter than a calendar year: choosing the first closing date wisely avoids a pointless mini-closing.
Swiss VAT: rates, threshold and filings
Registration happens with the Federal Tax Administration and yields a VAT number based on the business identifier (format CHE-xxx.xxx.xxx VAT). From then on, every invoice must state that number, the rate applied and the tax amount — three details sole proprietorship should lock down from day one to avoid retroactive fixes.
The right reflex for sole proprietorship: file every supplier invoice with its VAT on receipt. Forgotten input VAT is money definitively lost once the limitation period runs out.
Salaries and social contributions: the rates to know
Family allowances are financed by the employer through a cantonal compensation fund — rates and amounts vary from canton to canton, including in Wattwil. They come on top of the federal social insurances and appear on every payslip.
For sole proprietorship, the gap between agreed gross and paid net surprises every new employer: simulate it BEFORE hiring to avoid misunderstandings with the future employee.
The Swiss legal frame for sole proprietorship
AHV audits and VAT audits follow the same logic: start from the documents, trace to the entries, check consistency. A business in Wattwil with a clean audit trail sails through these exercises.
Late books show from the outside: poorly calibrated tax instalments, provisional filings, slow answers to the bank. Staying current is also a matter of image.
Wattwil: what changes, what does not
Sole proprietorship, Sàrl or SA in Wattwil: the AHV contact remains the competent compensation office, and taxes follow the scales of the canton St. Gallen.
Federal deadlines do not move in Wattwil: VAT within 60 days, salary declaration in January, 10-year record retention — postal code 9622 changes nothing about those rules, only the sender's address.
Frequently asked questions
Which documents should be prepared for the year-end closing?
Bank and cash statements at the closing date, the inventory of stock and work in progress, final AHV/LPP/accident settlements, contracts signed or amended during the year, invoices straddling two years and the detail of accruals. With an up-to-date document archive, most of it is already there. The list is identical in Wattwil: the CO dictates it, not the commune.
How long must records related to sole proprietorship be kept?
Ten years from the end of the financial year concerned (art. 958f CO). Electronic retention is permitted if the integrity and readability of the records are guaranteed — a serious digital archive validly replaces paper binders. A business in Wattwil can therefore archive fully digitally.
Which social contributions does a Swiss employer pay?
AHV/IV/APG: 5.3% employer share (the same is withheld from the employee); unemployment insurance: 1.1% each up to CHF 148,200 a year; occupational pension (LPP) by age and plan (employer at least 50%); occupational accident insurance paid by the employer; family allowances by canton. For an employer in Wattwil, family allowances follow the canton's rates.
What is the difference between a limited and an ordinary audit?
The ordinary audit applies to companies exceeding, for two consecutive years, two of three thresholds: CHF 20 million balance sheet total, CHF 40 million revenue, 250 full-time positions. Others fall under the limited audit, and those with no more than ten full-time positions on annual average can opt out with all shareholders' consent. These federal thresholds do not depend on the registered seat — in Wattwil as anywhere.
Also worth reading
In neighbouring municipalities
Switch to accounting that keeps itself up to date
MyFiducia.ai automates sole proprietorship for businesses in Wattwil: AI-read documents, posting suggestions, VAT and exports ready for your fiduciary. Try the platform or browse our other guides.
The application is operated in French.