What legal form should an Interim Manager take?

For an Interim Manager, there are differences regarding the choice of legal form (sole proprietorship, limited liability company or public limited company). These differences mainly concern liability, taxation, the type of accounting and the reputation vis-à-vis the client.

  1. Liability: As a sole trader, the Interim Manager is personally liable for all business risks. In the case of a Ltd. or AG, the liability risk is limited, as these legal forms are separate legal entities.
  2. Taxation: Taxation depends on the legal form. A sole proprietorship is subject to income tax, while a Ltd. or AG as a legal entity must pay corporation tax. Taxation can vary depending on the situation and the amount of income.
  3. Bookkeeping: The bookkeeping requirements for a sole proprietorship are less extensive than for a Ltd. or AG, as there is no obligation for double-entry bookkeeping. In the case of a Ltd. or AG, the accounts must be kept in accordance with the provisions of the Swiss Code of Obligations, which can involve a higher administrative burden.
  4. Reputation: Many customers take a critical view of commissioning a sole proprietorship due to the problem with the Bogus self-employment. Also the Provider normally insists on a Ltd. or AG.

Other factors that should be taken into account when choosing the legal form are the size of the company, the planned business volume, the risk profile, the planned duration of the activity and the individual tax and legal framework conditions.

It is advisable to seek advice from a tax consultant and a lawyer in order to find the optimal legal form for your own situation.