Partnership under common firm (VOF)

You run a business with one or more other persons. This makes you partners. Each partner brings money, goods and/or manpower into the business. A partnership contract is not compulsory, but is in fact essential.

The agreement states the length of the limited partnership, the contribution, authority, profits share and the arrangements for resignation of the partners. Profits are allocated in line with a formula set out in the partnership contract. You can either ask a civil notary to draw up the contract or do it yourself using a model contract.

Taxes
Generally the tax authorities consider each partner to be a self-employed entrepreneur. Each partner can therefore benefit from tax allowances for the self-employed. Each partner pays income tax over his or her share of the profits. Visit the tax authority for more information.

Liability
The partners are each jointly and severally liable for the obligations of the VOF. If the assets of the partnership are insufficient, creditors can make a claim on the personal assets of the partners in the VOF.

If you are married on the basis of community of goods, creditors can also make claims to your partner's assets. If you are married on the basis of a marriage settlement, the personal assets of your partner fall partially or completely outside the area of business liability.

If you are married on the basis of community of goods, you can still arrange a marriage settlement. Ask the civil notary for details.

The husband-wife business
Two people who are married, living together or are registered partners who start a business can enter into a VOF with each other, the so-called husband-wife business. If they both want to claim tax allowances for the self-employed, they have to perform equal tasks within the business.

The disadvantage of the husband-wife construction is that they are both jointly and severally liable, even if they are married on the basis of a marriage settlement.