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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Re: Starting a small business = lunacy?
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).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?
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Re: Starting a small business = lunacy?
For that revenue you become liable for VAT and must register.OrangeCrush wrote: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).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?
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Re: Starting a small business = lunacy?
The assumption here being that it's monthly.betelgeuse wrote:For that revenue you become liable for VAT and must register.
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Re: Starting a small business = lunacy?
That's an approximate yearly amount from selling crafts online.
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Re: Starting a small business = lunacy?
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
Im also very interested in this
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Re: Starting a small business = lunacy?
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.TeppoKroatialainen wrote:Ive heard somewhere that the yearly limit is about 8k before you need anything, but ths is unchecked thing!
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Re: Starting a small business = lunacy?
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.OrangeCrush wrote:That's an approximate yearly amount from selling crafts online.
Re: Starting a small business = lunacy?
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.OrangeCrush wrote: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).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?
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.