This is how you can register as a freelancer
Have you successfully completed your studies, gained your first professional experience and would like to register as a freelancer? This article is intended as a small aid to help you start your own business.
- Before you sign up as freelancer register, the question arises as to whether your activity is to be regarded as commercial or freelance. The income from commercial operations is regulated in Section 15 of the Income Tax Act and the income from self-employed / freelance work in Section 18 of the Income Tax Act.
- Typical examples of commercial activities are bakeries, butchers, restaurants, electronics stores, fashion stores, car dealerships, drywall construction, caretaker activities, etc. Typical examples of self-employed / freelance activities are advisory economists and business economists (business consultants), Journalists, tax consultants, auditors, lawyers, engineers, architects, doctors, veterinarians, dentists, artists Etc.
- In principle, however, the individual case must always be clarified if you want to register as a freelancer. So z. B. an ophthalmologist may also be commercially active if he sells contact lenses with associated care products in his practice. The medical treatment itself represents the freelance activity and the sale of contact lenses and care products is then classified as a commercial activity. Reference 15.6 of the Income Tax Act can be used as an aid to distinguishing commercial / freelance work.
- In contrast to a business owner, as a freelancer you are not obliged to register a business with your responsible city / local authority. You also do not need to pay any trade tax (applies from a profit of EUR 24,500.00) to your city / municipality.
- Report the start of your freelance work to the tax office in good time. If you have not yet been registered for tax purposes, you will receive a tax number. If you have already been registered for tax purposes with the tax office and have not yet been self-employed, you will receive a new tax number because you have started self-employed. You will need this (new) tax number to write invoices.
- If you have registered as a freelancer or self-employed, the tax office will give you too Send a questionnaire on which you provide various information about your self-employed activity have to. Based on the information on the amount of the expected profit in the questionnaire, you will also be asked for each quarter (10. March, 10. June, 10. September, 10. December) have to make advance payments regarding income tax to the tax office.
- Before starting a freelance activity, it makes sense to seek tax advice with regard to various tax regulations, such as B. Submission of advance sales tax returns, private vehicle use, etc. in order to avoid problems with the tax office from the outset.
- There is also the possibility of a start-up grant from the Federal Employment Agency for freelancers. You can find out how much the start-up grant is granted and what requirements you have to meet here.
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