Sole proprietorship comparison in Flerden: what every SME should know
Whether you run a Sàrl, an SA or a sole proprietorship in Flerden, 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
The choice of legal form turns on three axes: liability (limited to capital for Sàrl and SA, unlimited for the sole trader), taxation (economic double taxation of company profit and dividends versus direct income taxation) and pensions (the employee of their own Sàrl is subject to mandatory LPP; the self-employed insure voluntarily).
First accounting reflex for sole proprietorship: open the document numbering with the very first expense, even before registration. Founding costs are deductible — if documented.
The Swiss legal frame for sole proprietorship
In Switzerland, the duty to keep accounts stems from art. 957 ff. of the Code of Obligations. Legal entities (Sàrl, SA) and sole proprietorships with at least CHF 500,000 in revenue keep full accounts: balance sheet, income statement and notes. Below that threshold, a simplified record of income, expenses and assets is sufficient.
The good news: the Swiss frame is stable and predictable. Structure sole proprietorship once — chart of accounts, document flow, calendar — and the same organisation pays off for years.
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.
Input VAT deduction is the flip side of VAT charged: tax paid on purchases and investments comes back through the return, receipt in hand. Rigorous entry of supplier invoices therefore translates directly into cash.
Digitalising sole proprietorship: what actually works
Digitising does not mean hoarding PDFs: without the document-entry link, a digital file is as opaque as a box of archives — true in Flerden as everywhere.
For sole proprietorship, migrating history must not block the start: begin on day one of the current financial year and import the history later if needed.
Flerden: what changes, what does not
Working with a fiduciary from Flerden no longer depends on geography: the documents of a business in Flerden are shared online, while the canton Grisons keeps its own deadlines for the tax return.
For a business in Flerden, that means VAT returns identical to anywhere in Switzerland, but a tax return and family allowances governed by the canton Grisons.
Frequently asked questions
When must a business register for VAT?
As soon as its worldwide annual turnover reaches CHF 100,000 (CHF 250,000 for non-profit sports or cultural associations). Below that, voluntary registration remains possible and often makes sense to reclaim input VAT on investments. The threshold is federal: it applies in Flerden as everywhere in Switzerland.
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 Flerden: the CO dictates it, not the commune.
What is simplified bookkeeping and who can use it?
Sole proprietorships and partnerships under CHF 500,000 of revenue may limit themselves to recording income, expenses and assets (art. 957 para. 2 CO). Once over the threshold — or upon founding a Sàrl or an SA — full accounts with balance sheet, income statement and notes become mandatory. The CHF 500,000 threshold is assessed the same way in Flerden.
When is entry in the commercial register mandatory?
A Sàrl and an SA only come into existence with their registration. A sole proprietorship must register from CHF 100,000 of annual revenue; below that, registration stays voluntary but adds credibility and protects the business name. Registration goes through the canton's commercial register office — for Flerden too.
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