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sevenzero 6 hours ago

So basically you go for the legal stuff only really big companies use (instead of changing once its necessary) because you dont believe in your own product and dont want to be held liable, got it.

CodesInChaos 6 hours ago | parent | next [-]

Every sane founder uses a limited liability company (e.g. UG/GmbH). What's a bit unusual is the "& Co. KG" part.

scarmig 6 hours ago | parent | prev | next [-]

Do people in Germany see limited liability as some kind of crazy thing only a scammer would want?

kuschku 3 hours ago | parent | next [-]

If you just want limited liability, you'd go with a simple UG (takes a week and costs 600€, but if you do it right it takes 2-3h and costs 300€).

If you additionally want to avoid being taxed when you sell stock, the entire company, or transfer it to another country, you'd create two UGs, one as the primary company, the other as a holding. That takes 2-3h for both and costs typically around 800€, but can be had for as little as 400-500€.

This is what previous German YCombinator startups have gone with and recommended in the past.

Going one step further, because a UG is so easy to start, banks will refuse to loan you money in the first year, so you can only raise money by selling shares. If you want to avoid that, you can start a GmbH with an UG as holding instead. This will take a month and requires you to sign over at least 12500€ of assets to the GmbH.

Now, what if you want all of that, but you also want a shell corporation to hide the owners and investors? Then you'd start a GmbH & Co KG, where you set up a limited liability corporation, a shell corporation with multiple special classes of stock, and potentially additional holdings. This is what OP went with.

mpweiher 5 hours ago | parent | prev | next [-]

Nope.

But the GmbH & Co KG setup the poster wants is not needed for limited liability.

You get that with a plain GmbH (or UG), which is much, much simpler to set up.

sevenzero 6 hours ago | parent | prev [-]

Depends. Given OP built yet another AI tool, yea, I want to hold them liable in case something goes wrong (not that I'd buy these tools in the first place).

scarmig 5 hours ago | parent [-]

Useful info, explains a lot. Thanks.

Leptonmaniac 6 hours ago | parent | prev [-]

But hey, at least they get to write about their mid company name ("Plenty" - lol) got (rightfully) rejected...