Putting a SaRL (gmbh) at sleep

[stefbuet]

Hello everyone;

In 2019 I created a SaRL to try out a B2B business I had in mind while keeping my full-time job. It worked out OK, a great learning experience, and made a little positive gain after spendings & taxes. However, the ratio of returns over time spent is low. When I realized that by spending my evenings and weekends on this business I would generate the same returns as I would by doing nothing and invest the company capital on the stock market, I decided to stop this particular activity.

Now I was thinking of closing the company, investing the returned capital, and moving on.

But I really like the idea of having an empty shell SaRL that I could use someday if I have a business idea/opportunity requiring a limited liability structure. Creating a Sarl is not a quick process and it cost some money as well so that would prevent me from trying simple stuff “for fun”. But I do not like this opportunity cost of CHF 20k unused capital.

I was thinking of switching to a low-cost commercial bank account like MigroBank at CHF 35.-/yr if no activity. And then since I hold 100% of the company, keep the cash as my “personal” emergency fund. in case of a personal need, I would borrow the money from the company and return it later with a 0% interest rate.

Did anyone here face a similar situation?

Many thanks

[REandSTOCK]

@stefbuet

I would borrow the money from the company and return it later with a 0% interest rate.

Don’t do that. You would be giving yourself a hidden dividend of the difference between the interest that your company should ask you and the 0% rate. What’s more, in a certain way you would be mixing your personnal finances with the company finances, which allows the tax authority and the courts to consider your company and you as one person.

[mabi]

@stefbuet

I was thinking of switching to a low-cost commercial bank account like MigroBank at CHF 35.-/yr if no activity.

If you have only 2-3 transactions per year on your bank account I think a commercial bank account at Valiant Bank will be cheaper than Migros. Check out their cheapest account (no packages), if I remember correctly it is CHF 6 per quarter and then 1 CHF per transaction.

[San_Francisco]

@REandSTOCK

What’s more, in a certain way you would be mixing your personnal finances with the company finances, which allows the tax authority and the courts to consider your company and you as one person.

…which - at least from how you put it - doesn’t sound like a big issue, since the company will otherwise be dormant anyway?

[REandSTOCK]

It can at least be a problem if he starts an other activity later.

[stefbuet]

@REandSTOCK

Don’t do that. You would be giving yourself a hidden dividend of the difference between the interest that your company should ask you and the 0% rate. What’s more, in a certain way you would be mixing your personnal finances with the company finances, which allows the tax authority and the courts to consider your company and you as one person.

That is a good point. I need to spend some time reading material around this, thanks.

@REandSTOCK

It can at least be a problem if he starts an other activity later.

Not only this, but also because of my previous activities. I’ve dealt with many companies over the last 1.5years and the limited liability protection is important.