The tax requirements that must be observed in connection with a start-up grant from the Employment Agency are regulated in Section 3, No. 2 of the EstG. This means that the subsidy is tax-free and is also not subject to the progression clause. With regard to the income tax return , the corresponding amount does not have to be stated. Because: this is not a classic wage replacement benefit. Founders do not have to fear that they will be charged a higher income tax because they submit a corresponding application.
The checklist for the start-up grant
- Seek individual, subsidized advice
In order to save the costs of the start-up subsidy, the employment agencies have been using consultants for years, which unsettle motivated founders. Here it is worthwhile to obtain information on current procurement practice and to present a solid business plan.
- Report job seeker
In a second step, you register the job search with the office. While you are still in employment, you signal your willingness to take on a new position.
- Register as unemployed
If the previous employment relationship has been terminated, you can register as unemployed. Now it is important that you receive unemployment benefit I for at least one day in order to be eligible for the start-up grant.
- Pick up the application for a start-up grant
After at least one day that is paid with unemployment benefit I, the application for a start-up grant follows. Important: If you do not pick up this application, you will no longer be entitled to the start-up grant. If you are well prepared for the preliminary interview with the employment agency, you are hard to feel insecure and can convince with a well thought-out business idea.
- Apply for pre-start-up coaching
In some federal states, those start-ups who take advice beforehand are funded . You can apply for this pre-start-up coaching right now. In the future, you will have a consultant at your side who will provide support in writing and calculating the business plan and thus increasing the chances of getting the start-up grant.
- Create a business plan
You can view the business plan as a roadmap that shows the way to start a business. In addition, it is relevant for receiving the start-up grant. Ultimately, you have to create a workable concept that sets out your ideas on a few pages.
There are now a number of business plan templates that can be used to help with the creation.
- Obtain an expert opinion
According to whicheverhealth.com, your business plan must be as watertight as possible so that you do not offer the employment agency a target. It’s easy to forget important points if you’ve never made a plan like this in the past. It is therefore worthwhile to have the document checked by an experienced start-up consultant.
- Determine the time of self-employment
You can register for self-employment just two days after your last day of work in regular employment. For recipients of unemployment benefit I, it is important to have 150 days of entitlement to the start-up grant at this point in time.
- Register a business
Now it is necessary that you register for self-employment. Traders can do this at the trade office , for freelancers the tax office is available. At the time of founding, there should still be 150 days of entitlement to a start-up grant.
- Make a tax registration
Now the official foundation for self-employment has been laid. This is followed by the tax registration of your self-employed activity, which you can submit directly to the responsible tax office.
- Submit an application for a start-up grant
You must now have completely filled in the documents you received when you picked up your application. It is possible to have them checked by a specialist in advance. The following documents should be attached to the application for a start-up grant:
- Application forms
- Business plan
- Expert opinion
- Proof of registration of self-employment
- Any necessary permit or approval
- Approval and actual establishment
You can expect the employment agency to make a decision within a few weeks. Once the permit has been granted, you can focus all your personal efforts on the work.
- Extension of funding
After six months, the right to receive the start-up grant expires. You should send the application for the extension of the funding no later than four months after the foundation. Only before the end of the first phase is it possible to obtain the extension, which means additional income totaling 2,700 euros for the next nine months.