Light entrepreneurship
We talk about light entrepreneurship in general, but it can mean two different things. Are you a light entrepreneur with their own business ID or do you work using the business ID of an invoicing company?
In light entrepreneurship, a person sells their competence and invoices their work through an invoicing service without their own business ID. This is suitable, for example, for gig-based, part-time or experimental business. The invoicing service usually handles the taxes, notifications and insurances.
Today, light entrepreneurship can mean two slightly different things. Traditionally, it refers to operating without a business ID, in which case an invoicing service is used. On the other hand, some light entrepreneurs now operate under their own business ID, but they still invoice through an invoicing service. This difference affects, among other things, how taxation and YEL insurance are determined.
Try entrepreneurship with a low threshold
Light entrepreneurship enables the provision of one’s services without accounting or registration as an entrepreneur. It is a good way to test an idea or generate additional income alongside studies or employment, for example.
When should I establish my own company?
If the activities are regular or extensive, or you are aiming for growth, you should consider establishing a trading name or another form of company. Your own company enables, for example, broader tax benefits and business development.
More information on light entrepreneurship
Tax Administration instructions: https://www.vero.fi/en/businesses-and-corporations/business-operations/setting-up-a-business/light-entrepreneur/
Light Entrepreneurship Guide (in Finnish): https://kevyesti.fi/artikkelit/mita-on-kevytyrittajyys/
Billing service as an example: https://op-kevytyrittaja.fi/en
