Starting a small business = lunacy?

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OrangeCrush
Posts: 79
Joined: Thu Jul 12, 2012 6:10 pm

Starting a small business = lunacy?

Post by OrangeCrush » Fri Jan 13, 2017 3:35 pm

Hey all,

I read a lot on this Forum that deciding to start one's own business will near kill one's inner child. Would it be preferable to declare the freelance earnings (50-70k gross) under one's name instead of through a business and pay taxes accordingly, or does a TMI/Oy become a necessity at that point?



Starting a small business = lunacy?

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OrangeCrush
Posts: 79
Joined: Thu Jul 12, 2012 6:10 pm

Re: Starting a small business = lunacy?

Post by OrangeCrush » Sun Jan 15, 2017 8:09 am

OrangeCrush wrote:Hey all,

I read a lot on this Forum that deciding to start one's own business will near kill one's inner child. Would it be preferable to declare the freelance earnings (50-70k gross) under one's name instead of through a business and pay taxes accordingly, or does a TMI/Oy become a necessity at that point?
Edit: Whoa, typo (and a bit of wishful thinking) right there. Earnings would be 5k-7k gross for both the selling of photographs and handicrafts (cards, postcards, portraits, etc).

betelgeuse
Posts: 4350
Joined: Thu Aug 29, 2013 1:24 am

Re: Starting a small business = lunacy?

Post by betelgeuse » Sun Jan 15, 2017 12:41 pm

OrangeCrush wrote:
OrangeCrush wrote:Hey all,

I read a lot on this Forum that deciding to start one's own business will near kill one's inner child. Would it be preferable to declare the freelance earnings (50-70k gross) under one's name instead of through a business and pay taxes accordingly, or does a TMI/Oy become a necessity at that point?
Edit: Whoa, typo (and a bit of wishful thinking) right there. Earnings would be 5k-7k gross for both the selling of photographs and handicrafts (cards, postcards, portraits, etc).
For that revenue you become liable for VAT and must register.

betelgeuse
Posts: 4350
Joined: Thu Aug 29, 2013 1:24 am

Re: Starting a small business = lunacy?

Post by betelgeuse » Sun Jan 15, 2017 12:43 pm

betelgeuse wrote:For that revenue you become liable for VAT and must register.
The assumption here being that it's monthly.

OrangeCrush
Posts: 79
Joined: Thu Jul 12, 2012 6:10 pm

Re: Starting a small business = lunacy?

Post by OrangeCrush » Sun Jan 15, 2017 6:19 pm

That's an approximate yearly amount from selling crafts online.

TeppoKroatialainen
Posts: 88
Joined: Fri May 08, 2015 1:59 am

Re: Starting a small business = lunacy?

Post by TeppoKroatialainen » Mon Jan 16, 2017 10:29 am

Ive heard somewhere that the yearly limit is about 8k before you need anything, but ths is unchecked thing!

Im also very interested in this

betelgeuse
Posts: 4350
Joined: Thu Aug 29, 2013 1:24 am

Re: Starting a small business = lunacy?

Post by betelgeuse » Mon Jan 16, 2017 3:20 pm

TeppoKroatialainen wrote:Ive heard somewhere that the yearly limit is about 8k before you need anything, but ths is unchecked thing!
It's not. That is the old limit for VAT registration that is now at 10k. However, the YEL limit is lower (based on profit though) and changes every year.

betelgeuse
Posts: 4350
Joined: Thu Aug 29, 2013 1:24 am

Re: Starting a small business = lunacy?

Post by betelgeuse » Mon Jan 16, 2017 3:22 pm

OrangeCrush wrote:That's an approximate yearly amount from selling crafts online.
Then for sole trader it does not make much difference whether you register or not. If you register, getting deductions is easier. It's important that sole trader with business registration still means that you legally operate with under your own name unless you choose to register a separate trade name to the trade register. Even with a separate trade name, there is no separate legal entity.

MC Deli
Posts: 162
Joined: Thu Nov 08, 2007 4:10 pm
Location: Helsinki

Re: Starting a small business = lunacy?

Post by MC Deli » Fri Feb 10, 2017 3:30 pm

OrangeCrush wrote:
OrangeCrush wrote:Hey all,

I read a lot on this Forum that deciding to start one's own business will near kill one's inner child. Would it be preferable to declare the freelance earnings (50-70k gross) under one's name instead of through a business and pay taxes accordingly, or does a TMI/Oy become a necessity at that point?
Edit: Whoa, typo (and a bit of wishful thinking) right there. Earnings would be 5k-7k gross for both the selling of photographs and handicrafts (cards, postcards, portraits, etc).
At 5k-7k gross you are in the horrible position of probably wanting to have a TMI so you deduct as much as possible. And you may have to register for YEL, and make ALV returns, depending on the final number. Then, unless you do your own accounts, you will need a bookkeeper.

I would look at some other options (i.e. work with an existing company or online service and get paid as secondary income) and avoid the hassle and expense of your own firm until the income is higher.


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