Sole proprietorship for tradespeople in Erlen: what every SME should know
Whether you run a Sàrl, an SA or a sole proprietorship in Erlen, sole proprietorship eventually lands on your desk. Here are the practical reference points — legal basis, deadlines and common pitfalls — to decide with a clear head.
Choosing the structure: Sàrl, SA or sole proprietorship
Contributions in kind (vehicle, equipment, client portfolio) are possible when founding a Sàrl or an SA, but they follow strict valuation and disclosure rules. Cash contribution remains the simple route, in Erlen as elsewhere.
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
Exports, services abroad, acquisition tax: as soon as anything international enters the picture, VAT gets demanding (place of supply, acquisition tax on services). Better to set the rules once with a professional than to correct three financial years.
For businesses in Erlen, VAT is in practice the most audited tax: punctual returns consistent with the books markedly reduce the odds of a deep audit of sole proprietorship.
Salaries and social contributions: the rates to know
A Swiss salary reads in three columns: gross, employee social deductions, employer contributions. Confusing them distorts cost prices — and quotes from businesses in Erlen.
A thirteenth salary, where agreed, is accrued month by month — forget it and December reveals a charge of one-twelfth of the payroll, in Erlen as everywhere.
The Swiss legal frame for sole proprietorship
Whether a business sits in Erlen or elsewhere in Switzerland, the same federal law applies — one of the strengths of the Swiss system for sole proprietorship. Cantonal differences concentrate on taxation (rates, filing deadlines); bookkeeping itself follows art. 957 ff. CO everywhere.
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.
Erlen: what changes, what does not
Sole proprietorship, Sàrl or SA in Erlen: the AHV contact remains the competent compensation office, and taxes follow the scales of the canton Thurgau.
Erlen requires no special bookkeeping: the Code of Obligations applies at postal code 8586 as everywhere else, and a well-kept digital file transfers smoothly to any auditor in the canton.
Frequently asked questions
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 Erlen, 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 Erlen as anywhere.
Effective VAT method or net tax rate: how to choose?
The effective method deducts actual input VAT and files quarterly; the net tax rate method applies a flat industry rate to turnover, semi-annually, with no separate input VAT deduction. The flat rate suits low-cost structures; as investments grow, the effective method usually wins again. The choice rests on the company's own figures, in Erlen as anywhere.
What are the current Swiss VAT rates?
Since 1 January 2024: 8.1% (standard), 2.6% (reduced — for example food and medicines) and 3.8% (accommodation). Returns must be filed and paid within 60 days after the period ends (quarterly under the effective method, semi-annually under the net tax rate method). These federal rates apply unchanged in Erlen.
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