Light entrepreneurship
Updated: Nov 20, 2022
What is a light entrepreneur?
There are different ways to become an entrepreneur and establish a company. Becoming a light entrepreneur is the least risky because it's easier to administer and the most affordable way because there are no setup costs.
There's also no official term used in becoming a light entrepreneur which is why it's important to understand that different services offer different deals. There are different obligations when you're an entrepreneur with a business name and ID. You have to pay for different insurances, business taxes, reporting, accounting, and administer billing issues. As a light entrepreneur, you have less obligations than a person running a business with a business ID.
How does it work?
A light entrepreneurship is a new way of becoming an entrepreneur without a business ID or a business name. The person needs to have a platform that will handle the monthly expenses of being an entrepreneur. This platform will handle the bureaucracy of the entrepreneur for you as well as the invoices. A service fee will be charged typically when the first invoice is sent.
Light entrepreneurship is ideal when you work as a freelancer or you have a sideline job and you have at least more than one employer.
Who is it suitable for?
You can also be a light entrepreneur when you are a pensioner, student, unemployed or in maternity leave, but you have to consider that some benefits might get deducted or you might lose them. Be sure to contact the stakeholders associated with your benefits such as Kela or TE-office.
One more thing to note when you become a light entrepreneur is that the taxation and accounting considers you as an employee. The unemployment and pension insurance companies will consider you as an entrepreneur. You will send an invoice to your employer instead of receiving a payslip, which is why most SME companies will probably offer you this option of employment, but it also depends what kind of work you do for them.
Light entrepreneurship is beneficial when you offer a service and you are a cleaner, freelancer, blogger, consultant, graphic designer, photographer, entertainer, masseuse, renovator or builder.
If you are opening an establishment that has a physical store, ie a restaurant, which needs a lot of furniture and capital or you're part of a cooperative agreement (osuuskunta), then light entrepreneurship is not for you.
Platforms that will help you get started are:
There is no setup cost. They will be 5% service charge of the earnings. Ukko.fi promises that there are no bureaucracy or paperwork. It is also a very popular invoicing system.
OP- light entrepreneurship is also an invoicing system that changes 5% of the paid invoice. It also offers a free setup cost of a sole trade registration worth of 350€. This means that you will actually get a business ID and a company name.
The original post is written by Ukko.fi