Light Entrepreneur Service

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Light entrepreneurship is a form of work, where you invoice your clients without founding your own business or having to send out multiple different tax cards to these employers.

You focus on the work that inspires you the most, we take care of the boring bureaucracy.

Calculator includes service fee (4%) and insurance payments (2.5% + vat). Please note, if your incomes as light entrepreneur exceeds 7 958,99€ per year, you are obligated to take YEL insurance. Read more about YEL here.

Feel FREE! To start your journey today.

Monthly fees - forget it!

Hidden costs - no way José!

Service fee - only 4%

Feel FREE! to ask

The endless well of knowledge is here. Or FAQ. Whichever you prefer.

Is light entrepreneurship worth it? It totally is!

The term “light entrepreneurship” is still quite new, but did you know that thousands of Finnish light entrepreneurs are already invoicing through FREE!‘s services?

For pioneers in the business world, hard workers and free spirits who follow their calling – light entrepreneurship is an alternative way of invoicing. It makes it easy and hassle-free to send invoices without any complicated bureaucracy. Light entrepreneurship is perfect for working on the side of for example studying.

By reading this short text you’ll learn everything you need to know about light entrepreneurship, and how you can benefit from it.

What is light entrepreneurship?

Light entrepreneurship allows you to invoice for jobs or services without having to start a company. Setting up a company can be a complicated process, but as a light entrepreneur you take the easier way!

As a light entrepreneur you can send invoices to companies (as well as private actors), without a trade name or a business ID. Working as a light entrepreneur is not the same as working as self-employed. Thus, users of this type of invoicing service are often called light entrepreneurs.

When using the services of FREE! you don’t need to worry about anything extra, although it’s good to know these important facts about light entrepreneuship.

We’ll be going through these points among others:

  • Light entrepreneurship and taxation
  • How to invoice as a light entrepreneur
  • Experiences of FREE! light entrepreneurs
  • Why FREE! is the best alternative for light entrepreneurship services
  • Light entrepreneurship and taxation – how to keep the taxman happy
  • Insurances for light entrepreneurs

Less stress and hassle for light entrepreneurs

Accounting, taxes, insurance fees, salary – everything quite complicated, but also everyday-worries of an entrepreneur.

Light entrepreneurship is proven to cause less grey hair (okay, there is no official research about it, but it’s obvious!), because a FREE! light entrepreneur doesn’t waste time on boring paperwork – everything is done automatically for you!

When comparing experiences of light entrepreneurship, the common opinion is quite clear. FREE! light entrepreneurship is favourable because:

  1. When comparing the most affordable light entrepreneurship services, FREE! is at the top – with a fee of only 4% (and no hidden expenses!)
  2. FREE! takes care of all the boring and time consuming papework (accounting, taxes, incurance fees) so you don’t have to!
  3. As opposed to starting a trade name or company, there are no monthly fees when using FREE! – even if you take a break from our services.
  4. Being a light entrepreneur, it’s basically impossible for you to have financial problems – because there are no continuous exepenses!

Light entrepreneurship and taxes – what, why and how?

If someone tells you taxation in Finland is in any way logical and understandable, they’re probably lying. Taxation through light entrepreneurship, on the other hand, is very simple. All you need to do is send us your tax card (which can be uploaded electronically), and you can start invoicing for your work! By doing this you don’t need to worry about tax prepayments and withholdings, because we do it all for you.

The salary you receive through light entrepreneurship is earned income, which according to Finnish law is taxed progressively. This means that your taxation percentage rises according to how much you earn during a year.

When invoicing for your work, the amount of money that’s transferred to your account has already been deducted of all required payments (like taxes and insurance fees). In other words you don’t need to worry about anything else than doing what you want with the money you earned!

If you want to read the official law text and guidelines by the Finnish tax administration, you can find it here.

Nauti ansaitusta rahasta

Light entrepreneurship or tradename – how do they differ?

Light entrepreneurship or tradename – which is better? If we’re being completely honest, there’s no right answer. What you should remember, though, is that there are significant differences between the two. Light entrepreneurship with a tradename is not possible, even if that is the common belief sometimes. The biggest differences between light entrepreneurship and having a tradename is about automatisation. For instance, FREE! light entrepreneurship services are completely automised, which means that you don’t have to worry about:

  1. Hire an accountant
  2. Keep track of invoices and receipts
  3. Buy licenses for invoicingprograms costing up to hundreds of euros
  4. Remember sending all receipts, invoices and payments to your accountant
  5. Manually pay the ALV every month
  6. Manually make prepayments on taxes
  7. Manually make the YEL-payments

…Even though there are situations where having a tradename is the preferable alternative, light entrepreneurship is so simple and effortless that more people are leaning towards it – especially if the work being invoiced is regularly irregular.

Insurances, daily expense allowances, travel expenses and unemployment benefits of a light entrepreneur

Because light entrepreneurship isn’t officially recognized as either entrepreneurship or paid labour, it’s no wonder that questions about insurances, daily expense allowances, travel expenses and unemployment benefits are in a somewhat grey area.

Light entrepreneurship and unemployment benefits / Light entrepreneurship and daily expense allowances

Concerning light entrepreneurship, unemployment security is interpreted as you being an entrepreneur by your official title. So far there are no official guidelines for dealing with applications from light entrepreneurs, but light entrepreneurship TE services are developing at a rapid pace, so in the future the process will be faster. The TE Office reviews the unemployment insurance of a light entrepreneur case-by-case, on the basis of whether you are a full-time or part-time entrepreneur.

TE-services’ official standpoint on entrepreneurship and unemployment benefits can be read here

The TE Office will first determine whether you are an entrepreneur as referred to under the Unemployment Security Act. If you are considered an entrepreneur, the TE Office will determine whether you are employed as a full-time or part-time entrepreneur. The investigation is carried out by sending you a request for clarification.

Light entrepreneurship and travel expenses

Naturally, the benefits of a FREE! light entrepreneur also include possible reductions in travel expenses. These are definitely worth taking advantage of, as travel expenses will be deducted from your taxable income throughout the year, and especially a light entrepreneur who travels a lot for work will benefit financially from this.

“Commuting expenses (travel expenses) reduce your taxable earned income for the year. This way, they do not reduce your taxes. Instead, they reduce your income.”
– Vero.fi

Mileage allowances and daily allowance are paid in exchange for an approved travel diary.

Light entrepreneurship and incurances

A FREE! light entrepreneur doesn’t have to stress about insurances, as things like liability insurance and accident insurance are handled automatically by FREE!

Light entrepreneurship and service agreements

Starting out as a light entrepreneur you might find yourself in a difficult position if the person who’s buying your work or services demands an assignment agreement. Even though everything feels new and complicated, fortunately drawing up an assignment agreement is reasonably easy.
For a light entrepreneur, we always recommend a written assignment agreement, even if a verbal one is considered as binding all parties to the agreement. However, it’s understandable that the validity of a verbal agreement can be difficult to determine.

The service agreement should include at least the following points before the work starts:

  • The parties between whom the contract is made
  • The timetable for executing the work
  • The agreed compensation/salary for the work
  • Billing details such as payment time, payment method, etc

However, as many clauses as you want can be added to the service agreement, the important thing is that both parties are aware of the content.

Invoicing service Service fee
FREE! Kevytyrittäjä 4%
Pooli 5%
Ukko.fi 5%
Odeal 5% (when the sum of invoices are below 60 000€)
Eezy 5% (when the sum of invoices are below 75 000€)
Omapaja 5% (when the sum of invoices are below 75 000€)
Toimipiste.fi 5% (with a minium charge of 15€)

Summarizing light entrepreneurship

So what is light entrepreneurship? A light entrepreneur is simply a person who wants the easiest possible way to invoice customers or companies for the work they’ve done. This doesn’t require establishing a company (and dealing with the responsibilities that comes with it), instead you can act as an entrepreneur without actually being one. This sounds complicated, but is actually extremely easy.

As a light entrepreneur you can focus all your time on the essential stuff like getting new customers, doing the actual work and improving your services. Let us worry about the boring aspects.

Questions and answers about light entrepreneurship

What is a light entrepreneur?
A light entrepreneur is a person working with an entrepreneur-status, who uses an invoicingservice to charge for their work. A light entrepreneur falls best into the category between and entrepreneur and an employer, benefiting from both sides.
What is light entrepreneurship?
Light entrepreneurship is being an entrepreneur, without having all the responsibilities that entails. You don’t have to worry about any counterproductive aspects like withholding taxes, accounting or expensive invoicing programs. Establish what your work is worth, and charge accordingly.
Is light entrepreneurship possible with a trade name?
Light entrepreneurship is not possible with a tradename because as a light entrepreneur you don’t have a business ID. Your work, on the other hand, is comparable with an entrepreneur working through a tradename, without having the responsibilities it entails.
Can you get a startup grant as a light entrepreneur?
Receiving a startup grant requires having a business ID and founding a tradename or a company. As a light entrepreneur you don’t have a business ID and therefore you’re not entitled to a startup grant.
How do light entrepreneurs get their tax deductions?
The taxman always gets the final word, but generally deductions for the production of income are possible for travel expenses, service fees, health insurance payments and YEL-payments.

Useful links on the FREE.fi website

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FREE-Laskutus Oy

Perhonkatu 6 A, 4th floor
00100 Helsinki
Business ID 2768169-4

Customer Service

+358 (0) 203 323 45 (mon-fri 9-17)
CHAT (mon-fri 9-20)

+358 (0) 203 323 46 (mon-fri 9-17)

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