Earning money with YouTube is the dream of many content creators out there. But before you start, there are formal hurdles to overcome, including registering a business. You can find out how to do this and what to consider in this guide.
Key Insights
- You must register a business to earn money on YouTube, regardless of your earnings.
- Registration is usually done through the local town hall or municipality.
- The tax aspects are important; inform yourself well and consider consulting a tax advisor if necessary.
Step-by-Step Guide to Registering a Business
To register your business for YouTube activities, follow these steps:
1. Pick up Business License
The first step on your journey is to go to the town hall or municipality. There you can pick up the business license. The costs usually range from 20 to 40 euros, depending on the region. I recommend bringing enough money to avoid unnecessary trips.
2. Fill out Business License
Once you have received the business license, take your time to fill it out. Note that there may be points on the form where you are unsure. It is advisable to maybe skip these points or ask directly when submitting to avoid mistakes. You can rely on the experiences of others; the staff at the town hall will be happy to help you.
3. Submit Business License
Once the business license is filled out, bring it back to your town hall and submit it there. Again: Don't hesitate to ask for help if you are uncertain. You will see that the staff is often very helpful.
4. Await Mail from Tax Office
After submitting the business license, you must wait for mail from the tax office. This can take a while – about two weeks. Once you receive the tax registration questionnaire, it's time to fill it out. I advise you to inquire directly with the tax office if you have any uncertainties to avoid misunderstandings.
5. Submit Tax Return
After sending back the questionnaire, you will usually receive your tax number and tax identification number a few weeks later. This is an important step to be correctly taxed even as a small business owner. It is important to annually declare your earnings, even if you stay below a certain amount. Submitting the tax return is one of your obligations as a business owner.
6. Apply for Partnership on YouTube
You can apply for partnership on YouTube while waiting for your business registration. But don't wait too long to do so. I recommend completing the application within the next one to two months, even if your earnings are low.
7. Declare Earnings
Whether you earn money through YouTube videos, advertising, or affiliate links – it is important to declare all earnings. Keep your accounting diligent and also consult a tax advisor here to ensure proper tax compliance.
8. Take Advantage of the Small Business Regulation
If you expect to earn less than 22,000 euros per year, the small business regulation could be advantageous for you. This means less bureaucracy and therefore less effort for the annual tax return.
9. Inform Chamber of Industry and Commerce (IHK)
In some cases, the Chamber of Industry and Commerce (IHK) is automatically informed when you submit your business license. Clarify beforehand whether this is the case in your municipality to avoid any unpleasant surprises.
10. Inform Employer
If you are currently employed, it is imperative to inform your employer about your business registration. This is particularly important as some employers may not approve of this. Be sure to clarify this issue beforehand to avoid any problems.
Summary
Registering a business for your YouTube activities is the first step to really get started. Remember to carefully follow all necessary steps and consult a tax advisor or authorities if necessary.
Frequently Asked Questions
What documents do I need for business registration?You need your ID card or passport and possibly other documents to support your project.
Do I need to register a business even with small earnings?Yes, anyone who intends to earn money must register a business, regardless of the amount of income.
How long does the processing of the business registration take?Typically, you will receive mail from the tax office two to four weeks after.
What if I am still a minor?In this case, you must obtain the consent of your parents or legal guardians in order to register the business.
Does my status as a small business owner change if I earn more?Yes, if you exceed the income thresholds, you must switch to regular taxation.