The step into self-employment rarely starts with a business plan in the trades, and usually starts with a full order book at your current employer and the thought: I can do this on my own account too. To turn that thought into a clean start, here are the decisions in the right order.
Sole proprietorship or LLC?
The two legal forms that matter in practice for small trade businesses:
Sole proprietorship: fast, cheap, no minimum capital. You count as self-employed (recognition by the compensation office required) and are liable with your private assets. Commercial register entry is mandatory from CHF 100’000 annual turnover, optional before that (and often worthwhile for credibility).
LLC (GmbH): needs CHF 20’000 in share capital and a trip to the notary; in return, liability is generally limited to the company’s assets. You are employed by your own LLC (wage, OASI contributions as an employee, mandatory occupational pension) and the company pays profit tax; in return it looks more professional to banks, property managers, and general contractors, and makes later partnerships or a sale easier.
Rules of thumb: if you’re starting out alone, staying small, and carry little risk in your trade, a sole proprietorship keeps things lean. If you’re planning to hire staff, work on sites with real damage potential (water, electrical, structural) or work for general contractors from the start, take the liability limit of the LLC seriously. Switching from a sole proprietorship to an LLC later is possible, but more work than starting right the first time. For the fine points (tax, pension provision), an hour with your accountant is worth it; see how to work with them.
The registration checklist
- Compensation office: recognition as self-employed (sole proprietorship) or registration as an employer (LLC).
- Commercial register: mandatory for an LLC, depending on turnover for a sole proprietorship.
- VAT: mandatory from CHF 100’000 turnover, registration with the Federal Tax Administration (ESTV); choose a method (effective or net tax rate method).
- Insurance: business liability insurance (non-negotiable in the trades), accident insurance (UVG) for staff, sick pay insurance recommended, plus the right property coverage for vehicles and machinery.
- Occupational pension: voluntary for the self-employed (pillar 3a or joining a pension fund), mandatory for employees.
- Trade-specific requirements: permits and proofs depending on your trade (e.g. installation permits in electrical and plumbing work), and association membership with its collective agreement obligations.
The first business decisions
- A business account from day one, private and business finances strictly separate.
- Work out your hourly rate before the first quote goes out. The most common founder mistake is copying a competitor’s price that doesn’t cover your own costs.
- Office tools: a system for quotes, invoices, and hours from the start, instead of a spreadsheet collection that collapses with your first employee. What matters when choosing one is covered in the selection checklist; MeisterOffice is built exactly for this stage and scales up to 15 employees.
- Is your first customer your old employer? Handle it cleanly: check non-compete and non-solicitation clauses in your old contract before you start.
Frequently asked questions
How long does it take to set up? Sole proprietorship: a few weeks with compensation office recognition. LLC: realistically four to eight weeks, with the notary, capital payment, and commercial register. You can prepare to take on jobs in parallel.
Do I need a business plan? Yes for banks and larger loans. For yourself, the hard-numbers version is often enough in a small trade business: fixed costs, target income, billable hours, hourly rate. If that math works out, that is your business plan.
When does hiring the first employee pay off? When you’ve been turning down more billable work than a wage costs for months, and the seasonal curve carries through winter. An alternative for getting started: temporary help or an apprentice.