Sole trader (e.K.)
Sole trader financial statements in Germany: Bilanz, EÜR and the § 241a exemption
A registered sole trader (eingetragener Kaufmann, e.K.) sits at the lightest end of the German accounting spectrum. Depending on turnover and profit, they either keep a full HGB balance sheet or use a simple cash-basis calculation. This page explains where the line falls and what each option involves.
Who counts as a sole trader here
A sole trader carrying on a commercial business who is entered in the commercial register is an eingetragener Kaufmann (e.K.) and, in principle, a merchant under the HGB. That merchant status brings the general bookkeeping duty of §§ 238 and 242 HGB — double-entry accounts and an annual balance sheet (Bilanz) and income statement (GuV). A sole trader is not a corporation, has no share capital, and never publishes accounts with the Unternehmensregister.
The important point is that this bookkeeping duty is switched off for small sole traders by a specific exemption, so many e.K. businesses never prepare a formal HGB balance sheet at all.
The § 241a exemption: €800,000 and €80,000
The threshold that decides whether a sole trader needs a real balance sheet.
Under § 241a HGB, a sole trader is relieved of the duty to keep double-entry books and prepare an HGB Bilanz and GuV if they do not exceed €800,000 in revenue and €80,000 in profit (Jahresüberschuss) in two consecutive fiscal years. A newly registered sole trader can also rely on the exemption from the first year if these limits are not exceeded on the first balance sheet date.
Stay under both figures and there is no obligation to prepare a commercial-law balance sheet. Exceed either on two consecutive dates and full HGB bookkeeping kicks in for the following year. This threshold was raised by the Wachstumschancengesetz for fiscal years beginning after 31 December 2023, from the previous €600,000 / €60,000 limits.
EÜR vs full Bilanz
Cash-basis EÜR
A sole trader within the § 241a limits determines profit with an Einnahmenüberschussrechnung (§ 4 Abs. 3 EStG) — a simple income-minus-expenses calculation filed on the tax form Anlage EÜR. No double-entry accounting, no balance sheet.
Full HGB Bilanz
Above the thresholds, or if the sole trader chooses to keep books voluntarily, they prepare a full HGB balance sheet and income statement with accrual accounting, provisions and depreciation like any merchant.
The E-Bilanz
A sole trader who keeps a balance sheet must transmit it electronically to the tax authority as an E-Bilanz under § 5b EStG. Our standalone E-Bilanz product handles this for €20 per fiscal year.
No publication
Because an e.K. is not a corporation, none of this is filed publicly. There is no Offenlegung and no Bundesamt für Justiz penalty regime — the accounts are for the sole trader and the tax office only.
Choosing between the two
The EÜR is simpler and cheaper, which is why most small sole traders use it while they can. But a full Bilanz can be worth choosing voluntarily — for example when a bank wants accrual figures for financing, or when the business is close to the thresholds and wants continuity before it is forced to switch. Once you exceed the limits, the switch to a Bilanz is mandatory from the next fiscal year.
For a sole trader who does keep a balance sheet, our software prepares the HGB Bilanz and GuV and the E-Bilanz for the tax authority. For those still on the EÜR, the balance-sheet obligation simply does not arise yet.
Frequently asked questions
Does a sole trader in Germany need a balance sheet?
Only above the § 241a thresholds. A registered sole trader (e.K.) is a merchant with a bookkeeping duty, but if they stay under €800,000 revenue and €80,000 profit in two consecutive years they are exempt and can use a cash-basis EÜR instead of an HGB balance sheet.
What is the § 241a exemption?
It relieves small sole traders and natural-person partnerships from double-entry bookkeeping and HGB financial statements when revenue stays at or below €800,000 and profit at or below €80,000 across two consecutive fiscal years. They then compute profit with an EÜR.
What is an EÜR?
An Einnahmenüberschussrechnung (§ 4 Abs. 3 EStG) is a cash-basis income-surplus calculation — business income minus business expenses — filed for tax on the form Anlage EÜR. It replaces a full balance sheet for sole traders within the § 241a limits.
Does an e.K. have to publish its accounts?
No. A sole trader is not a corporation, so there is no disclosure with the Unternehmensregister and no late-filing penalty regime. The accounts, whether an EÜR or a full Bilanz, are prepared for the sole trader and the tax office only.
When must a sole trader switch to double-entry bookkeeping?
From the fiscal year after they exceed €800,000 revenue or €80,000 profit on two consecutive balance sheet dates. At that point full HGB bookkeeping and an annual Bilanz and GuV become mandatory, and an E-Bilanz must be transmitted under § 5b EStG.