Letter from TLG: We’ve been using the services of Albatross for years now, and what we love about Alex and his team is their ability to guide us through what we often feel is ‘fiscal fog’ with efficiency and clarity (and no judgment when we ask all.of.the.questions).
This series will share invaluable tips and tricks to make the most of your individual tax scenario. From hidden deductions to smart financial planning, Albatross is here to ensure that your tax journey is not just manageable but surprisingly beneficial. Without further ado, here's our next article in our Ask Albatross series. To find other articles in our series, click here.
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Disclaimer: At Albatross, we're your expert accountants, demystifying the labyrinth of taxes without the jargon. But remember, the info here may not be a one-size-fits-all for your situation. Reach out to us for the latest tailored advice.
Thinking of Starting Your Own Business?
If you’re ready to launch a side hustle or even go full-time with your skills or products here in Switzerland, you’re in the right place! Let’s break down some essentials to get you moving with confidence.
Is This Guide for You?
Yes, if you’re just starting out or plan to start billing for your services independently. We’ll go over the necessary steps to make sure your business is on solid ground, beginning with the basics of legal structure. (For more on choosing between sole trader and limited structures, see our previous article.) The guide below is for those going down the sole trader route only.
What Do You Absolutely Need to Get Started?
1. Sign Up for AVS Social Insurances (Mandatory):
You’ll need to register as an independent, paying social insurance on any profits. We recommend FPV in Paudex for a smooth registration process. Other social insurances may be available but aren’t required (for example accident or pension).
2. Register in the Commercial Registry (Not Always Mandatory):
As a general rule, this step is only necessary if your annual revenue exceeds CHF 100,000. Certain industries may have additional rules.
3. Register for VAT (Conditional):
While not required unless your revenue crosses CHF 25,000 in the first three months or CHF 100,000 in the first year, opting into VAT early can sometimes work to your advantage. VAT can get complex, so don’t hesitate to ask us if you’re unsure.
4. Set Up a Basic Accounting System (Mandatory):
You’re responsible for keeping your accounts updated and filing annually. Depending on your business’s complexity, you can use simple software or even Excel. Albatross can provide templates to make it easy.
Once you’ve ticked these boxes, you’re ready to dive into the Swiss market!
A Few Potential Roadblocks to Note
To register as an independent with AVS, you’ll need at least three clients, which proves you’re truly independent and not an employee for a single company. If this doesn’t fit, consider a limited structure.
At Albatross, we’re here to make sure your business setup is on point, with an efficient accounting system and advice on allowable business expenses. As you grow, we’ll guide you on the tax steps to take and keep your finances in top shape.
Ready to take that first step? We’re here to help you make it count. Contact us.
