In Switzerland, more than 99% of businesses are SMEs, which means companies with fewer than 250 employees. According to a study led by the Federal Statistical Office, many of these businesses employ fewer than ten people. Many entrepreneurs, focused on their operational activities, do not take the time to explore solutions for optimising their structure and planning the transfer of their business.
Should I transition from a sole proprietorship to a corporate entity? Should I join a pension fund? What are the options between salary and dividends? Should I keep the business property within the company or create a separate entity? How can I minimise tax liabilities when ceasing operations or selling my business? As an entrepreneur, a multitude of questions come to mind. Piguet Galland guides you according to your plans, whether you wish to enhance or transfer your business or simply prepare for unforeseen events in your professional and personal life.
In the world of entrepreneurship, where innovation and perseverance are key, financial planning is an essential pillar. Often overshadowed by the focus on creation and development, a solid financial strategy can make the difference between a thriving project and a resounding failure. For an entrepreneur, every decision matters, and every mistake can be costly. Good financial planning allows entrepreneurs to succeed by establishing clear financial goals and defining the necessary resources to achieve them.
Planning is not just about focusing on operational management. As a business leader, you must ensure that your structure is suited to your situation. Transitioning from a sole proprietorship to a corporate entity offers many advantages, such as protecting your private assets in case of bankruptcy and optimising the taxation of your income and gains from sales. To take advantage of these optimisation opportunities, a plan is necessary to comply with the constraints set by the tax authorities. For instance, you must adhere to a five-year period between converting a sole proprietorship to a corporate entity and selling the company to benefit from tax neutrality.
Financial planning is not limited to the daily management of a business. It also encompasses key aspects such as business succession and retirement planning for the entrepreneur. Ignoring these elements can jeopardise not only the future of the business but also the personal financial security of the entrepreneur.
To ensure a comfortable retirement, it is essential to build a retirement capital through tied pension plans (pillar 3a) and/or by joining a pension fund. As an employee/shareholder or partner in your business, you can set up a customised occupational pension plan, which can create new opportunities for tax deductions, such as buying back missing contribution years or establishing LPP (Swiss occupational pension plan) contribution reserves.
In general, it is financially more advantageous to liquidate or sell a corporation than a sole proprietorship. However, regardless of the legal structure, there are ways to reduce the tax burden during the liquidation or sale of the business. A sole proprietor can benefit from liquidation profits, while the gains from selling shares in an LLC (Sarl) or a corporation (SA) can be completely tax-exempt. Many tax pitfalls can be avoided by engaging the services of knowledgeable professionals in the field.
Our specialists are at your disposal if you would like information on the best legal structure to choose, customised occupational pension plans, and tax optimisation opportunities during the operation, liquidation, and sale phases of the business. Contact us !