Frequently asked questions

Light entrepreneurship is not precisely defined, so light entrepreneurship can mean different things in different services. For us, it means that you can try out your business idea risk-free without having to establish a business name or your own company, be responsible for the company's financial risks or accounting obligations.

So you get to enjoy the freedom of an entrepreneur, be your own boss and work exactly as much and exactly when it suits you best. As a light entrepreneur, you can also compete for assignments and thus receive a better salary than as an employee.

However, even a light entrepreneur has his responsibilities, because he is seen by the authorities as an entrepreneur. For example, a light entrepreneur is liable to tax, needs a business ID and has to pay, for example, health insurance premiums. In addition, a light entrepreneur must think about how to handle invoicing and, for example, possible debt collection in the event that the customer runs into payment difficulties.

That's why we exist. We take care of all this for you; authority and paperwork matters and their payments, business ID and of course invoicing from your client and possible collection of receivables and salary payment to the light entrepreneur's account. In addition, our service includes accident insurance and an initial business survey.
‍
Because our service fee is per invoice, you can do exactly as much work as you want without worrying about running costs.

All you need to do

• Create an account, it's free and doesn't oblige you to anything
• Get a client and do the agreed work
• Create an invoice
• We'll take care of the rest: invoicing, salary payment and boring paperwork for you

Note. If you invoice more than €9,208.43 per year, you also need YEL insurance. That's the only thing we can't do for you.
We'll take care of everything else.

If you are an adult and want to try entrepreneurship without risk, be your own boss and gain flexibility in your life without worrying about official matters and other paperwork, light entrepreneurship is right for you. As a light entrepreneur, you can also compete for assignments and thus receive a better salary than as an employee.

Most professions can be practiced as a light entrepreneur. Here are a few examples:

Freelancer, builder and renovator, expert, blogger, graphic designer, photographer, performing artist, housekeeper, translator, musician, programmer, personal trainer, pensioner, cleaner and income from affiliate activities.

Only a few jobs that require a permit cannot be invoiced through us. See below what cannot be invoiced in the service.

Health services

Operating as a light entrepreneur in the healthcare sector is only possible under your own business ID, in which case the professional becomes a sole proprietor. Providing health services subject to a permit is therefore not possible as a light entrepreneur.

Transport services

If the total weight of the vehicle is 2,000-3,500.00, the professional must have a business ID and a valid traffic permit and submit a declaration of goods transport. Therefore, the professional cannot operate as a light entrepreneur, because after applying for their own business ID, the driver becomes a registered entrepreneur.

Real estate brokerage

Real estate brokerage can only be carried out by a private entrepreneur or legal entity that is registered as a real estate brokerage firm. Therefore, this profession cannot be carried out as a light entrepreneur.

A light entrepreneur is an entrepreneur in the eyes of the authorities, even though the payments are credited to your account as salary. As an entrepreneur, you are your own boss, you can compete for assignments and thus receive a better salary than as an employee. You can also enjoy the freedom that entrepreneurship brings and work as much or as little as you like and when you want.

On the other hand, being an entrepreneur also comes with responsibilities. In a traditional employment relationship, the employer takes care of the payments to the authorities, but the entrepreneur is responsible for ensuring that they are taken care of. As a light entrepreneur, you can easily handle them through the Laskutan.com service.

The following official matters are included in the light entrepreneur's duties:

• Value added tax (the most common is 25,5%)
• Health insurance contribution 1.87%
• Withholding tax according to your tax card
• YEL insurance, if you invoice more than 9 208.43 euros per year

Although as a light entrepreneur you do not need a personal business ID, you must still use a business ID for invoicing. Our service includes providing you with a business ID.

Since a light entrepreneur is also an entrepreneur, he or she should also note that unemployment insurance is different for entrepreneurs than for employees.

When you use the Laskutan.com service, in addition to invoicing, possible collection and accident insurance, we will also take care of the above-mentioned tax and health insurance contributions and related paperwork, as well as providing you with a business ID. When you are a light entrepreneur, the only thing we cannot handle for you is YEL insurance.

The invoicing system takes into account all official matters and we help you, for example, choose the right VAT rate for the product/service you sell. You can take your time to familiarize yourself with the system before you become a light entrepreneur.

It's great that you're thinking about these things! Unfortunately, there's no clear answer to this. The profitability of your own business depends on many things, such as the volume of turnover and how many fixed and variable costs arise from the business. Expenses can also be surprisingly high, for example, from outsourcing administrative tasks.
‍
If you work on a side or gig basis, light entrepreneurship is probably a more sensible solution, because our service fee is always applied to the sales transaction, and we don't have monthly costs, as is often the case with entrepreneurs with a business name. Starting your own business also involves more bureaucracy and financial risks.

If you're considering entrepreneurship full-time, it might be smart to start as a light entrepreneur and test your business idea risk-free. When the business is well-established, you've acquired enough customers, and you want to switch to a business name, you can do it at any time. So there is no need to interrupt your light entrepreneurship, because there are no regular payments or obligations.

Our service (5%*) includes:

• Comprehensive invoicing and payroll service
• Easy-to-use system, where even a first-time user can easily create an invoice
• Management of official matters and payments**
  Accident and liability insurance
• Initial survey by phone
  A large package of information and necessary forms

*You can calculate the amount of our service fee simply by using the formula 0.05 x the amount of your invoice before VAT. We do not charge any other costs.

**If you invoice more than €9,208.43 per year, you will also need a YEL insurance card. This is the only thing we cannot do for you. We will do everything else.

Will I lose the opportunity for startup funding by working as a light entrepreneur?

You won't. On the contrary, being a successful light entrepreneur is likely to be seen as a very positive thing when you start your own business and apply for startup funding.

Yes, you can operate as many as you want and invoice them through us.

When operating as a small business, you must take into account the following official matters:

• VAT to be included in the invoice (the most common is 25,5%)
• Health insurance contribution 1,87%
• Withholding tax according to your tax card
• YEL insurance, if you invoice more than €9.208,43 per year.
• Business ID for invoicing

When you use the Laskutan.com service, in addition to invoicing, possible collection and accident insurance, we will also handle the above-mentioned tax and health insurance contributions and related paperwork. We use our own business ID for your invoicing, so you do not need to obtain one either. When operating as a small business, the only thing we cannot handle for you is YEL insurance. You can apply for it from any party you want.

Our invoicing system takes into account all official matters and we will help you, for example, choose the right VAT rate for the product/service you sell. You can take your time to familiarize yourself with the system before you become a light entrepreneur.

A full-time light entrepreneur is required to take out YEL insurance if the following conditions are met.

• The value of your employment income is over 9.208,43 per year (2021) and
• The activity lasts at least 4 months

You can decide for yourself where and what kind of YEL insurance you take out. Our invoicing system has more information and information forms on the subject.

A full-time entrepreneur should join an entrepreneur's fund. The amount of earnings-related allowance paid by the unemployment fund is based on the entrepreneur's confirmed YEL income. As a rule of thumb, the higher the YEL income, the better the unemployment security the entrepreneur has.

It is worth preparing for unemployment in at least one of the following ways:

• You have joined the Entrepreneurs' Fund and been a member for the required 15 months, so that you have also taken out YEL insurance for a minimum of 13,247 euros in earned income.
• Entrepreneurs do not need to shy away from the 15-month membership required by the Entrepreneurs' Fund. Entrepreneurs can receive protection from their old employee fund through the right to subsequent protection.
  You are not a member of the fund or have paid YEL insurance contributions, but you have taken out some separate insurance against unemployment.

If the above matters are exhausted, a full-time entrepreneur can still apply for labor market support from Kela.

You can work as a light entrepreneur in all life situations, e.g. when unemployed, on parental leave, as a student or even retired. Please note that this may affect the benefits you may be paid.

A light entrepreneur can invoice just one gig or work part-time or even full-time and invoice whenever necessary. As a light entrepreneur, you can work as little or as much as you like. Because we always invoice per invoice and not, for example, once a month with an ongoing contract, you can work as much as you want without worrying about running costs.

If you work for a salary, you can sell your own skills as a part-time job and let the Laskutan.com service take care of the paperwork related to invoicing and salary payments for you, such as official fees and notifications. If you later find that you have enough customers to work full-time and want to start your own business, you can start it at any time. So there is no need to stop being a light entrepreneur, because there are no regular payments or obligations.

Full-time

A full-time entrepreneur should join the Entrepreneurs' Fund. The amount of earnings-related daily allowance paid by the Unemployment Fund is based on the entrepreneur's confirmed YEL income. As a rule of thumb, the higher the YEL income, the better the unemployment security the entrepreneur has.

It is worth preparing for unemployment in at least one of the following ways:

• You have joined the Entrepreneurs' Fund and been a member of it for the required 15 months, so that you have also taken out YEL insurance for a minimum of 13,247 euros in earned income.
• Entrepreneurs do not need to shy away from the 15-month membership required by the Entrepreneurs' Fund. The entrepreneur can receive protection from his old employee fund with the right to subsequent protection.
  You are not a member of the fund or have not paid YEL insurance contributions, but you have some separate insurance taken out against unemployment.

If the above matters are not in order, a full-time entrepreneur can apply for labor market support from Kela.

Part-time or gigging

Part-time and gigging entrepreneurs should, if possible, join the employee unemployment fund again. If you work as a part-time or gigging entrepreneur in addition to paid work and belong to an employee fund in your field, you will receive earnings-related unemployment allowance from it during your unemployment period, once your right to earnings-related benefits has been fulfilled. The right to earnings-related benefits is fulfilled when the part-time entrepreneur has worked as a wage earner for a total of six months and has done paid work for at least 18 hours a week.

If you have not worked sufficiently in addition to the part-time entrepreneur, the right to earnings-related benefits is not fulfilled and therefore you will not receive earnings-related daily allowance from the fund. However, you can apply for labour market support from Kela.

If you become unemployed, you can continue to work as a part-time entrepreneur, but the work you do may reduce the amount of benefit paid. In this case, you will receive an adjusted daily allowance. If you only work a little as a light entrepreneur, it will probably not affect the benefit you receive.

A change in the law came into force at the beginning of 2018, which means that the part-time or main activity of a business started while unemployed is not assessed during the first four months of starting the business. An unemployed job seeker is entitled to unemployment benefit for this period. If you receive income from your business during this period, unemployment benefit will be paid adjusted according to Kela.

After four months, the main and part-time activities of your business are assessed by the TE Office. If the business is assessed as part-time, the possibility of unemployment benefit remains. If the business is assessed as full-time, the right to unemployment benefit ends. The decisive factor in assessing the main or part-time activity is the amount of work used, not the income received. After the end of the first four months, the assessment "uses information about the actual amount of work in your business for the first four months".

Light entrepreneur's agreement with the Laskutan.com service

The light entrepreneur authorizes the Laskutan.com service to handle payment transactions and other official and paper matters between the light entrepreneur and the client. Therefore, no employment relationship under the Employment Contracts Act is formed between the light entrepreneur and the Laskutan.com service.

A light entrepreneur creates an assignment relationship with their client. In a traditional employment relationship, work is not invoiced like a light entrepreneur.

Laskutan.com handles payment transactions and other official and paper matters between the light entrepreneur and the client. Therefore, no employment relationship under the Employment Contracts Act is formed between the light entrepreneur and the Laskutan.com service.

Characteristics of an agency relationship:

• The light entrepreneur has the right to decide the duration and amount of work – no regular working hours
• The light entrepreneur works independently and is not subject to supervision
• The work is done with the intention of earning money
• The light entrepreneur can have several customer relationships at the same time
• The light entrepreneur bears a certain risk and responsibility

Not all points need to be met. The most important thing is that the light entrepreneur works to earn money and acts independently. More information is available on the website of the Employment Pensions Law Service.

Please note that the agency relationship is not suitable for all sectors or all work tasks. You can find more information about the tax authorities' guidelines on the differences between a commission and an employment relationship here.

It is advisable to agree on a commission relationship in writing, although you can also agree on it verbally. You can use our contract template and modify it to suit you. The template can be found in the invoicing system and you can download it from there without any costs or commitment to our service.

Laskutan.com handles payment transactions and other official and paper matters between the light entrepreneur and the commissioner. Therefore, no employment relationship under the Employment Contracts Act is formed between the light entrepreneur and the Laskutan.com service.

It is not necessary to make a written contract, as the work can also be agreed upon verbally. However, to avoid ambiguities, it is recommended to make a written agreement.

• Parties to the agreement
• The assignment and its validity
• Schedule and reporting
• Amount of the fee and invoicing basis
• Reimbursement of expenses
• Payment terms and invoicing
• Termination of the assignment
• Additional terms
• Liabilities
• Amendment
• Amendment and transfer of the agreement
• Invalidity of the agreement
• Applicable law and jurisdiction
• Signatures

Note. It is always a good idea to make the agreement in writing and in a way that the other party cannot modify it independently afterwards. You can find the agreement template in our invoicing system. You can download it from there without any costs or commitment to our service.

You can only work with a tax card in very small quantities. If you work with a tax card, your client is responsible for all the obligations related to salary payment. This can be seen as a hassle, especially in gig work and other short-term assignments. If, on the other hand, all the official and paper matters have already been taken care of and he only needs to pay the invoice, the client has a significantly lower threshold for hiring a light entrepreneur.

Laskutan.com takes care of all the bureaucracy for you. The light entrepreneur only needs to do the agreed work and your client pays the invoice. This makes it extremely easy for both the light entrepreneur and his client.