Vor dem Hintergrund eines sich beständig ändernden Steuersystems stellt sich für einenUnternehmer kontinuierlich die Frage sowohl nach der optimalen Rechtsform und Gewinnverwendungfür sein Unternehmen als auch nach der optimalen Aufteilung seines Vermögenszwischen Privat- und...

The paper discusses optimal choices of legal form and of profit distribution under German tax law. We find that in general, partnerships yield higher after-tax profits than corporations. Moverover, profits should be fully distributed rather than retained.

The paper discusses optimal choices of legal form and of profit distribution under German tax law. We find that in general, partnerships yield higher after-tax profits than corporations. Moverover, profits should be fully distributed rather than retained.

As from time to time taxation systems are changing deeply, the following two questions arise continually for an entrepreneur: what is the optimal combination of legal form and profit appropriation for his company and what is the optimal splitting of his assets between his private and business...