Light entrepreneurship is an easy and risk-free way to leverage your skills. As a light entrepreneur, you operate without a business ID and invoice your work easily without the hassle of bureaucracy.
Light entrepreneurship is a popular, convenient and risk-free way to charge customers for services provided by an individual.
Becoming a light entrepreneur is a viable option for any service provider/freelancer/individual who does not want to set up their own Business ID or do bookkeeping & accounting. This is an option for the ones who wants to explore the world of self employment in the least risky way possible. Using an invoicing service you only need to get the job done, send an invoice, wait for the money to arrive in you bank account.
More and more people are nowadays becoming self employed through convenient invoicing service’s that significantly reduces administrative work and thus saves valuable time. The use of invoicing services (as light entrepreneurs) has grown considerably in recent years and there is no end in sight to their increasing popularity. The simplicity and ease of use of these services is a major factor.
Find out how much you would earn from an sent invoice in matter of seconds using our salary calculator.
Enter the amount you are thinking of invoicing for the work performed in the “Invoice amount” section.
Add your personal tax percentage, which you can check on the Tax Administration’s own website.
Service fee (4%) and FREE.fi coverage (2.5%) are included in the calculator. Please note that you are obligated to pay YEL if your yearly income as a light entrepreneur exceeds 8575.45€. You can read more about YEL here.
For a light entrepreneur, the withholding percentage determined by the tax office determines the proportion of each invoice that goes to tax – just as it does for income tax on wages. However, as a light entrepreneur, you do not have to pay the tax yourself – just send your tax card electronically to FREE.fi, which automatically deducts the tax from each invoice you receive.
Light entrepreneurship generates earned income for the light entrepreneur and, naturally, the taxation of this income is determined in such a way that the more income there is from the services sold, the more tax is paid on it. If light entrepreneurship is only a secondary activity, the tax is determined by taking into account the other income earned by the light entrepreneur.
A light entrepreneur is considered to be self-employed, as the light entrepreneur does not have an employment relationship with the principal/assignee. Therefore, the light entrepreneur is also covered by the unemployment fund for self-employed persons.
Being a light entrepreneur does not completely exclude the possibility that a light entrepreneur may not receive unemployment benefit to support his/her income. The payment of unemployment benefits always depends on whether the light entrepreneur is considered as an employee or an entrepreneur for the purposes of unemployment benefit law.
YEL insurance for light entrepreneurs is a case-by-case situation. The obligation to pay for the YEL insurance applies to a light entrepreneur who is employed for more than four months and whose income exceeds a minimum threshold to be determined each year.
In 2023, the minimum threshold for YEL liability will be 8575.45€ per year. However, you do not have to take care of the YEL insurance yourself FREE.fi is here to help you. Ask more about YEL from our customer service experts.
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"When I heard about FREE.fi, I realized that this is my thing. The more I have done business with Free, the better the customer service has gotten. You can ask anything from the customer service and you will get an answer quickly."
"I chose FREE.fi for the pink colour. I got lucky with my choice, because FREE.fi workers turned out to be efficient and supportive people."
"I have used FREE.fi's light entrepreneurship services for many years. I chose FREE.fi because the company's operations are professional, knowledgeable and efficient. You always get help when you need it."
"In the beginning it was not easy, because there was so much new information, and a lot to clarify regarding taxes and insurances. I wasn't sure what information was relevant and applied to me specifically. Now that I'm FREE.fi's customer, it doesn't matter what is my background. There are a lot less things to clarify now."
Things can happen while working – no matter how careful you are. FREE.fi Coverage has been created with these situations in mind. Light entrepreneurs can work free of worry, knowing that FREE.fi Coverage has your back.
FREE.fi users are insured with liability insurance when they are working. This means that for example if a construction workers breaks a window while working, the window will be reimbursed. The deductible is 1200 euros, of which FREE.fi will cover half.
FREE.fi users are insured with accident insurance in case of any accidents that happen during work or on the commute to work. The accident insurance can be used to obtain treatment by contacting the Fennia Nurse.
As a light entrepreneur, you can earn as much as you want. However, remember to adjust your personal tax rate as you earn money as your income is considered as wage income. Once you exceed €8,575.45 per year (2023) and/or, if the business-like activity lasts for minimum of 4 months, you are obliged to take out a self-employed person’s pension insurance (YEL). The billing service will help you to do this.
Light entrepreneurship is an easy and hassle-free way to work on a job in an entrepreneurial way without having to commit to accounting services and financial management costs. As a private trader, you usually commit to monthly fees for financial management of various services. Starting as a light entrepreneur is free, while starting a business as a private trader costs money. The main difference between being a light entrepreneur and being a private trader is that as a light entrepreneur you do not have a Business ID and can start and stop your usage of the invoicing service immediately.
As a light entrepreneur, you can invoice your work conveniently through the invoicing company. You create and send an invoice to your client in the invoicing company’s platform, then you wait for your client to pay the invoicing company, which then will pay you a refund for your work after tax and other deductions to your bank account. Remember to make sure that you include all deductions in your invoice price so that you receive the correct amount of payment in your account.
Anyone can be a light entrepreneur. Light entrepreneurship is suitable for almost any sector. Popular sectors for self-employed light entrepreneurs include creative industries, cleaning, construction, logistics, etc. Light entrepreneurship is particularly suitable for people who work part-time or are just starting out as an entrepreneur. As a light entrepreneur, you invoice your client for the work through an invoicing company.
Registration is free and does not bind you to anything. There are no monthly fees or hidden costs in our service and you can stop using the service at any time. We charge a 4% service fee and a 2.5% FREE coverage fee only when the customer pays your invoice and you are about to receive money.
Talenom One offers an affordable and comprehensive solution for Private Traders’ accounting. For one monthly price (starting at €49/month), you get not only easy-to-use software but also an expert accounting team that takes care of your financial management. Bookkeeping, tracking expenses, invoicing, preparing reports and much more conveniently in one place.
Do you want to get to know the service with an expert? Book an appointment for a free demo, where a Talenom expert will introduce you to the Talenom One service and help you move forward!
