The client for the thesis is a private individual, who means to start a business in the near future. The client has no practical experience as an entrepreneur. The purpose of the thesis is to find out the most profitable company form for the client. The purpose is to not only look at the profitability through taxing but also through the judicial requirements of each company form.

The theoretical background of the thesis is formed by applicable laws, such as limited company law and income tax law. Suitable literary works have also been used in addition to the legislation. The thesis consists of a theoretical section and a practical section. Comparing calculations have been made in addition to the theoretical background in order to evaluate which company form would have to pay the least amount of taxes.

Based on the calculations the most profitable company form for the client would be a limited partnership, but since the used numbers are not exact but merely approximations, the exact profitability and taxes cannot be accurately calculated. Based on the calculations the amount of paid taxes would not differ radically from each other. A sole trader would have to pay some additional taxes compared to a limited partnership. A limited company would have to pay over 2000 euro extra compared to the limited partnership.