I am about to take over a business, in stages. I'll start soon with a small stake and will complete the rest within 5 years.
I am a B permit, EU national but should get the Swiss nationality within a year (I hope - the process started).
The business is a SA/AG.
I am wondering how to own this rising stake?
A) In my own name
B) Through another corporation
A) Pros is mainly the low cost: simply own it, no accounts to file (just tax return), no incorporation...
Cons is that the taken over AG is a financial advisory business: I risk being requalified as a professional investor for my own wealth. Therefore my investments' unrealised profits and losses would be taxable and I would have no means to deduct some personal expenses.
B) Has lots of costs: incorporation of a GmbH, accounts, etc.
But it has some benefits: I could potentially take the dividends from the AG and invest it by the GmbH, like a small "family office".
The main issue with that: the investments unrealised profits and losses are taxable for companies but not for individuals.
But as it would stay in the GmbH, I could expense many things related to running the GmbH, depressing the taxable base.
The risk of requalification into a professional investor makes B interesting. But until I am and/or my wealth is big enough, A should make more sense.
Anyone has this holding structure and can comment