[throwawayheyhey]

As a German, I would strongly advise against incorporating too early (at least in Germany). I once made the mistake of founding a UG for a small side project and had to realize at some point that all the required bureaucracy was keeping me from doing the actual work. Let me break down the work for you because I hadn't been fully aware of what was awaiting me:

- double-entry bookkeeping: This is easier than it sounds because there're lots and lots of rules. I mean, even though I had learned this stuff in school for a bit and my mom actually used to teach bookkeeping, it was still hard. An Excel sheet won't cut it! (In fact, Excel is not allowed anymore as it can be manipulated after the fact, so you'll need actual bookkeeping software.) Sure, you could hire a bookkeeper but then you'd be spending even more (see below).

- Umsatzsteuer-Voranmeldung: monthly, for the first two years

- Umsatzsteuererklärung, Körperschaftsteuererklärung, Gewerbesteuererklärung, Handelsbilanz, Steuerbilanz/E-Bilanz: 6 months after the end of a fiscal year (usually May 31). Make no mistake, this is tons of work.

And then there're the costs:

- Founding: at least ~300€

- Mandatory IHK membership fee: ~160€/year

- Business bank account: at least 10€/month

- Bookkeeping software: at least 15€/month (unless you want to use pen & paper)

- Sending E-Bilanz & Handelsbilanz electronically to the tax authorities & the Handelsregister: ~50€/year

So yeah, unless your ramen-profitable as people call it, I'd say: Don't do it [in Germany]!

[helge5]

I did this a few times and I disagree. The tax consultant can do all this work for you (book keeping, all the tax work, etc). It is not free (I would say ~3k per year for everything a small GmbH needs), but in return you get a limited liability company.

[throwawayheyhey]

Well, if OP is making so much that he can easily afford spending 3k/year on a tax consultant and still be left with a considerable amount (say 2-3 times this amount), then I'd say he's already ramen-profitable. ;)

[zenovision]

Yes, better not incorporate any business at all, than do it in Germany. You will waste 50% of your time on bureaucracy, instead of developing your product.