How founders prepare for their first tax consultation: Standard 2026

Law firms screen out those who arrive unprepared

The German tax consulting market has been operating at capacity for years. The Federal Chamber of Tax Advisors regularly points out the shortage of junior professionals in the field, which is why many firms no longer take on new clients without preliminary review. The initial consultation is evolving from an open meet-and-greet into a structural review. Those who arrive unprepared typically receive a list of required documents and a second appointment instead of substantive advice.

Choosing a business structure requires a well-founded decision

Under German law, a GmbH (limited liability company) requires share capital of €25,000; for cash contributions, at least €12,500 must be paid immediately. The Unternehmergesellschaft (UG, a simplified form of GmbH) can technically be founded with just €1, but must set aside one-quarter of annual profits as reserves until it reaches the €25,000 threshold. Sole proprietorships and GbR (partnership) require no initial capital, but the founder is personally liable for all business obligations with private assets. In the first consultation, a tax advisor asks about the liability risk of the business model and plans for investor entry, not which business structure sounds most appealing. Those who don't bring these answers typically delay the actual founding by weeks.

GoBD-compliant receipt management is the new minimum standard

The GoBD (Principles for Proper Bookkeeping and Record Retention in Electronic Form) have been in effect since 2015 and were clarified in 2019. They require that receipts be recorded immutably, transparently, and promptly. A shoebox of receipts is no longer an acceptable option and will lead to questions. Tools like DATEV Unternehmen online, Lexoffice, or sevDesk meet the requirement by digitizing receipts upon receipt and integrating them with the firm's software. By asking about the planned accounting system in the initial consultation, a tax advisor assesses the foundation for a functioning working relationship.

The small business exemption determines the first invoice

As of January 1, 2025, the small business exemption under § 19 UStG has new thresholds: €25,000 in prior-year revenue and €100,000 in the current year, increased under the 2024 Annual Tax Act. This figure determines whether the first invoice includes sales tax – and cannot be corrected retroactively. A tax advisor therefore must clarify this before the first invoice is issued.

1. ID card and, if there are multiple founders, shareholder list with ownership percentages
2. Draft partnership agreement or at minimum the planned business structure with justification
3. Bank statements from the founding account or proof of capital contribution
4. Liquidity plan for at least twelve months including ongoing fixed costs
5. Draft or copy of business registration application, if already filed
6. Decision on the small business exemption under § 19 UStG
7. Planned accounting system or software for receipt management

Fees are determined by the Tax Advisor Remuneration Ordinance

Tax advisors bill according to the Tax Advisor Remuneration Ordinance (StBVV), which sets fees based on the matter's value. For startup consulting and ongoing bookkeeping, many firms now agree on flat rates instead of hourly rates because it's more predictable for both sides. Those who ask about the billing model in the initial consultation and realistically assess their own document volume negotiate on equal footing – those who leave this open later accept whatever standard rate the firm considers appropriate.

Good preparation is the foundation for successful advice

A tax advisor can recommend a business structure, set up accounting, and simulate tax liability. He cannot make the decision about what risk a founder is willing to accept. That decision comes before the first appointment – and that's exactly what law firms will check first in 2026.