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Tax aspects of starting a business: sales tax, income tax and trade tax

02/08/2024 | by Patrick Fischer, M.Sc., Founder & Data Scientist: FDS

Founding a company is an exciting step, but it also requires tax considerations. When starting a business, founders need to consider a variety of tax issues, including VAT, income tax and trade tax. In this article, we take a closer look at these tax aspects and how they affect budding entrepreneurs.

Sales tax: when is it relevant?

Sales tax, also known as VAT, is a consumption tax levied on the sale of goods and services. In Germany, the general VAT rate is currently 19%, while the reduced rate is 7%. When setting up a company, founders must decide whether they want to be liable for VAT or not.

The VAT liability can be relevant for companies that offer goods or services that are subject to VAT. If a company is liable for VAT, it must collect VAT on its sales and pay it to the tax office. At the same time, it can claim the input tax it has paid for business expenses.

Income tax: personal tax liability

Income tax concerns the personal tax liability of the founders and owners of a company. In Germany, income from self-employment and entrepreneurial activity is generally subject to income tax. The amount of income tax depends on the income and the personal tax rates.

It is important to note that in Germany the Income Tax Act makes a distinction between tradespeople and freelancers. Freelancers, such as doctors, lawyers and engineers, are subject to different tax rules than tradespeople who produce goods or provide services.

Trade tax: For companies with commercial operations

Trade tax is a municipal tax levied on companies that operate a trade. The amount of trade tax depends on the amount of trade income and the assessment rate of the respective municipality. Founders must check whether their activity is classified as commercial and whether they are subject to trade tax.

Crowdfunding and legal provisions: Financing for start-ups

Crowdfunding has become a popular financing method for start-ups. It allows founders to raise capital from a variety of investors, often via online platforms. Despite its appeal, start-ups must observe certain legal provisions when using crowdfunding:

1. Crowdfunding platforms: Start-ups should ensure that the crowdfunding platform they select meets the legal requirements and has a valid license.

2. Type of company: The type of company can have an impact on the legal requirements for raising capital. Some forms require the publication of certain information for investors.

3. Transparency: Start-ups must be transparent about their business, financial position and risks. This is crucial to gain the trust of investors.

4. Contracts and agreements: It is advisable to seek professional legal assistance to properly draft the contracts and agreements with investors and ensure that they comply with applicable laws.

Proper advice and compliance with the law are crucial to running successful crowdfunding campaigns and avoiding legal issues.

Conclusion

Tax considerations and legal regulations are key aspects of starting a business and raising capital via crowdfunding. Founders should learn about tax obligations early on and consult legal experts to ensure that their business operations comply with applicable laws and regulations. With the right preparation and advice, founders can maintain their financial integrity and build their business successfully.

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What is Opinion formation?

02/08/2024 | by Patrick Fischer, M.Sc., Founder & Data Scientist: FDS

Opinion formation refers to the process through which individuals develop their views, beliefs, or opinions on specific topics or issues. This process can be influenced by various factors and typically involves the collection of information, evaluation of arguments, reflection on personal experiences, and interaction with others.

Here are some key elements that can contribute to the process of opinion formation:

Information Gathering:

People gather information on a particular topic from various sources, including news, books, online media, personal experiences, and conversations with others.

Argument Evaluation:

The collected information is assessed and analyzed to understand arguments for and against specific viewpoints. This may involve critical thinking and the evaluation of evidence.

Personal Experiences:

Individual experiences and personal events can strongly influence opinion formation. Personal emotions and experiences can shape one's perception of a topic.

Social Interaction:

Discussions and interactions with other individuals, whether in personal settings or online communities, can help in understanding different perspectives and shaping one's own standpoint.

Cultural Influences:

Cultural backgrounds, traditions, and values can influence opinion formation by providing a framework for evaluating information and formulating viewpoints.

Media Consumption:

Consumption of media, whether through traditional news sources, social media, or other platforms, can significantly impact opinion formation by shaping the available information and perspectives. Opinion formation is an ongoing process that may change over time as new information becomes available or personal experiences evolve. It's important to note that opinion formation is individual and can vary from person to person.

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Successful Online Marketing: Strategies for Customer Acquisition in the Digital Age

02/08/2024 | by Patrick Fischer, M.Sc., Founder & Data Scientist: FDS

Introduction:

The relentless pace of digitization has revolutionized the way businesses operate. In this context, online customer acquisition is gaining paramount importance. This article explores various strategies and approaches that businesses can employ successfully to attract new customers in the online realm.

1. Search Engine Optimization (SEO):

A crucial factor in online customer acquisition is visibility in search engines. Through targeted Search Engine Optimization (SEO), businesses can ensure that their website is prominently displayed in relevant search queries. This involves thorough keyword research, high-quality content creation, and a technically sound website structure.

2. Social Media Marketing:

Harnessing the power of social media is indispensable for reaching potential customers. A well-defined social media strategy enables businesses to directly engage with their target audience, foster interaction, and boost brand awareness. Platforms like Facebook, Instagram, LinkedIn, and Twitter offer diverse opportunities for targeted advertising and organic audience communication.

3. Content Marketing:

High-quality content serves as a key element in successful online customer acquisition. By providing relevant and useful information, businesses position themselves as industry experts. Content marketing encompasses blog posts, infographics, videos, and other formats that resonate with and inform the target audience.

4. Email Marketing:

Despite newer marketing trends, email marketing remains an exceptionally effective method for customer acquisition. Through personalized and targeted email campaigns, businesses can directly market their products or services to potential customers. Automated email sequences can effectively guide the customer lifecycle.

5. Influencer Marketing:

Collaborating with influencers can significantly expedite online customer acquisition. Influencers often possess a loyal following, and their endorsements can strengthen the trust of potential customers. The key lies in selecting the right influencer who aligns with the brand.

6. Online Advertising:

Targeted online advertising allows businesses to direct their messages to a precisely defined target audience. Platforms like Google Ads, Facebook Ads, and LinkedIn Ads offer various ad formats to increase visibility and drive conversions.

Conclusion:

Successful online customer acquisition demands a strategic and comprehensive approach. The mentioned methods can be employed individually or in combination, depending on a business's goals and target audience. In a world where digital presence is pivotal, the right online marketing strategies are the key to sustained business success.

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Salary report: Income of videographers for documentaries and film production in Germany in 2024

02/08/2024 | by Patrick Fischer, M.Sc., Founder & Data Scientist: FDS

The world of documentaries and film production is a fascinating but also demanding industry for videographers. What will the income of videographers specializing in the production of documentaries and films be like in Germany in 2024? A detailed look at the current situation provides insights into remuneration practices in this creative and often time-consuming professional field.

The role of videographers for documentaries and film production

Documentary and film production videographers are responsible for the visual realization of stories, ideas and concepts. From conception to post-production, they play a central role in the creation of impressive audiovisual works

Remuneration range in Germany in 2024

The income of videographers for documentaries and film production in Germany in 2024 varies depending on various factors, including experience, project effort, production budget and the videographer's reputation.

Fees per project

Videographers in this field receive fees per project. Fees can range from €2,000 to tens of thousands of euros, depending on the complexity of the project, the duration of the film and the inclusion of special effects or animation.

Collaboration with production companies and broadcasters

Cooperation with production companies, TV stations or streaming platforms influences the order situation. Long-term partnerships can lead to regular projects and a stable source of income.

Technical requirements and equipment

The technical requirements for producing high-quality films and documentaries are high. High-resolution cameras, professional sound and lighting equipment and extensive knowledge of post-production are necessary

Script and concept development

Videographers for documentaries and film production are often involved in the creative process of script and concept development. These additional tasks can be reflected in a higher fee

Marketing and industry presence

Self-marketing plays a crucial role. An appealing website, presentation of previous work and positive reviews can increase visibility and lead to new projects.

Flexibility and commitment

The flexibility to adapt to different genres and styles is crucial in the film industry. Commitment and dedication to each project can contribute to a positive reputation in the industry.

Recommendations and festival participations

Positive recommendations from production partners and participation in film festivals can not only increase income, but also recognition in the industry.

Conclusion

The income of documentary and film production videographers in Germany in 2024 offers not only financial rewards, but also the opportunity to bring creative visions to life. With a mix of technical skill, creative passion and a sense of narrative, videographers can thrive in this field and help create moving stories for a wide audience.

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Building a Second Stream of Income in 2024: How to Successfully Establish an Online Side Hustle

02/08/2024 | by Patrick Fischer, M.Sc., Founder & Data Scientist: FDS

In 2024, many individuals find themselves seeking ways to bolster their financial stability and create additional sources of income. In times of economic uncertainty and shifts in the job market, the concept of building a second stream of income is gaining prominence. Fortunately, the internet offers numerous opportunities to generate supplemental income online. In this article, we'll explore proven strategies to successfully build a second stream of income in 2024.

1. Freelancing:

The landscape of the digital job market has expanded, and freelancing platforms offer a plethora of opportunities for talents of all kinds. From writing to graphic design to programming, there's a wealth of tasks that can be completed online. Platforms such as Upwork, Fiverr, and Freelancer allow professionals to market their skills and collaborate with clients worldwide.

2. Affiliate Marketing:

With the right marketing approach, you can generate passive income through affiliate marketing. This model involves promoting products or services of other companies and earning a commission for every sale generated through your referral. Blogs, social media, and YouTube are platforms where you can share affiliate links to earn revenue.

3. Creating Digital Products:

E-books, online courses, webinars, and digital art are just a few examples of products that can be sold online. If you have expertise in a specific area, you can package your knowledge into digital products and sell them on platforms like Amazon Kindle Direct Publishing or Udemy.

4. Cryptocurrency Investments:

The cryptocurrency market has gained popularity in recent years, with many individuals profiting from trading digital assets. It's crucial to educate yourself and exercise caution, but with the right approach, the crypto market can be a way to build a second stream of income.

5. Social Media Content Creation:

Platforms such as YouTube, Instagram, and TikTok provide opportunities to earn money by sharing content. With a growing number of followers, you can enter into advertising partnerships, create sponsored content, and generate income through ads.

The world of online income is diverse, and success hinges on dedication, creativity, and consistency. Building a second stream of income takes time and effort, but the potential benefits are worthwhile. In 2024, the doors of the digital market are wide open, and it's up to each individual to seize the opportunities to achieve financial freedom and security.

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