Social security for startup founders: inside. The complete 2025 guide
Employed or self-employed? This question can determine the success of your startup. Find out everything about social security when setting up a GmbH or UG in our guide.
Why the right social security can be decisive for you as a founder
Health insurance, pension insurance, status assessment procedures — not necessarily what you want to deal with when setting up a company. Because anyone who makes the wrong decisions at the beginning (or none at all) often pays for it later — with money, time and nerves.
That is why mika and Techniker Krankenkasse have organized a workshop specifically for founders. We summarize the most important findings from this workshop in this guide.
🎥 The full workshop can be found here:
The problem is widespread: Many founders do not know whether they are employed as managing directors of their own GmbH or UG or are self-employed. This ambiguity can be expensive, as contributions and health insurance options change depending on your status.
Am I employed as managing director or self-employed?
This question concerns almost every founder of a GmbH or UG. The answer depends primarily on your equity investment.
The 50 percent rule: The simple case
50% or more participation = self-employed
If you start alone or as a couple and have 50% or more equity participation, you are almost always self-employed. You have the legal power to prevent decisions and are therefore not subject to social security contributions
The more complex case: Less than 50% participation
Less than 50% participation = employed
Example: Three people, each with 33.3% participation. Someone can be overruled here — they are employed subject to social security contributions, not self-employed.
But there is one important exception to the 50 percent rule: the so-called “all-encompassing blocking minority.” Despite a lower share capital participation, a shareholder is given the right to prevent all important decisions.
Attention from investors
If new shareholders are added or investors join, the shareholding structure may change. This can influence your insurance status — many founders forget that.
Status assessment procedure: Your insurance against expensive surprises
that Status assessment procedure is your “life insurance” against expensive back payments. This is because the confirmation from the German Pension Insurance is legally binding for all bodies in Germany.
What is the status assessment process?
An official procedure with the German Pension Insurance that clearly clarifies your social security status. The result protects you from later discussions with reviewers.
Why is it so important?
Tax audits usually take place a few years after the company was founded. If you have not paid any social security contributions, but the examiners find that you are dependent after all, it can be expensive:
- Additional payments over the years
- Interest and late payments
- legal uncertainty
When should you have the status determined?
- When founding
- When there are changes in the shareholder structure
- With new investors or co-founders
The process is free of charge and takes between 3 weeks - 6 months (yes, unfortunately...). The legal certainty is worth this time.
Health insurance: GKV or PKV?
“I'm starting my own business now, I have to switch to private life now” — that's a mistake! As a self-employed managing director, you have the choice.
Voluntary statutory insurance: The safe option
advantages:
- Family insurance: partners and children also insured
- Predictable costs: Income-related contributions
- No health check: pre-existing conditions don't matter
- Easy billing: insurance card from the doctor
Private health insurance: For whom it is worthwhile
advantages:
- Often lower contributions for young, healthy founders
- Better services (head doctor, single room)
- Faster availability of appointments
- Wider range of services
Disadvantages:
- Health check required
- No family insurance (each person individually)
- Advance payment principle for medical bills
- Contributions increase with age
Returning from private health insurance
Switching back to the GKV can be difficult:
- No longer possible from the age of 55
- Only possible if employed or unemployed
- Important: Don't be exempted from compulsory insurance!
Hiring employees: What is changing?
As your company grows and you hire the first employees, you will have new social security obligations.
Regular employees: The standard
Most employees are hired as “normal” employees. All social security contributions are due here:
Contributions (shared between employer and employee):
- Health insurance: 14.6% + additional contribution (approx. 1.7%)
- Pension insurance: 18.6%
- Unemployment insurance: 2.4%
- Long-term care insurance: 3.05% (3.4% for childless people)
Your duties as an employer:
- Registering with social security
- Monthly contributions
- payroll
- Notifications when changes are made
Working students: The 20-hour rule
advantages:
- No health and unemployment insurance
- Pension insurance only (9.3% employer share)
- Important: Maximum 20 hours per week
Semester break exception: During the semester break, female working students may work more — a maximum of 26 weeks per year. This must be documented.
Internships: Mandatory vs. voluntary
- Mandatory internships: free of social security (even with salary)
- Voluntary internships: normal social security obligation
Minijobs: Not always as cheap as expected
If 556 euros are paid out, there are total costs of around 720 euros due to lump sum contributions. Working students are often cheaper.
Your checklist for the right social security
Immediately after founding
✅ Clarify status: Am I employed or self-employed?
✅ Check shareholdings: Do I have 50% or more?
✅ Apply for status assessment procedures in case of uncertainty
✅ Choose health insurance: GKV or PKV?
✅ Check pension insurance: Pay voluntarily?
When making changes
✅ New shareholders: check status again
✅ Investors: Observe shareholding relationships
✅ Repeat status check with every change
✅ Inform health insurance about status changes
When hiring employees
✅ Choose a form of employment: employee, working student or intern?
✅ Observe the 20-hour rule for working students
✅ Documenting semester breaks for working students
✅ Register with social security in good time
✅ Organize payslips
Long-term planning
✅ Regular review: check the status of changes
✅ Documentation: Keep all notifications safe
✅ Use advice: Get professional help in case of uncertainty
✅ Precaution: Be prepared for possible operational audits
How Mika can help you
As a startup founder, you have enough topics. Mika helps you with tax registration, ongoing bookkeeping and annual financial statements — so that you can concentrate on your business.
If you want to know more, book one 15-minute free consultation
How TK Social Pizza Can Help You
With “Social Pizza”, TK offers free advice on all social security issues for founders — regardless of your health insurance. The team explains complex topics in an understandable way and without rigging down paragraphs.
Free appointments can be booked via Social pizza platform
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