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[OrangeCrush]

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[Rosamunda]

If you exceed the 8500e turnover in 12 months you have no choice but to register for VAT. The bad news is that it is retroactive on all your business in the 12 month period. On the other hand, some of your overseas sales will be exempt (outside the EU) and you will be able to claim back the VAT on your purchases, so it's unlikely that hitting the threshold will hurt too much this year, as long as you have been keeping track of all your sales and purchases.

You can choose to become either a sole trader (Toiminimi) or an Oy (you need 2500e capital to start up) and both statutes enable you to hire other people (or consider buying their services as subcontractors ie, they invoice you for their work)

This guide is a useful place to start reading: https://www.vasek.fi/assets/Files/Start ... ni-ENG.pdf

Don't be afraid to ask Vero directly for advice eg. http://www.intofinland.fi or, better still, find a tyoväenopisto course on starting a business (some are held in English) or use this resource: https://www.yrityssuomi.fi/en/ (all the info you need in one place)

Yes, go back and find all your receipts. You will have to do some basic double-entry bookkeeping and regular VAT returns. My advice, apply for an annual VAT return schedule but watch your cashflow and ALWAYS respect the deadlines for tax returns.

You will also have to pay YEL ie entrepreneur's pension contributions. No way out of that.

(PS: If you are an hour WEST of Helsinki (ie Raseborg), I'd be happy to meet you for a coffee and explain some of the basic stuff.)

[OrangeCrush]

Rosamunda, you rock my world. I'll be meeting with someone this week to get the ball rolling on this. Will also read those links you've posted, and see what option is the best here. If I were going to target 30-50k a year (gross), is my best option TMI or Oy? I would have the 2500e with no issue, were I to go the OY-route.

As luck would have it, we'll be smack in between Raseborg and Helsinki. Once we're finished our move in the coming weeks, coffee would be super. Thanks! OC

[Rosamunda]

I did one of the courses given by Entreprise Helsinki and asked the question "what's the magic number for creating an Oy?" and the accountant who was running the class said that there is not really a magic number but - in his opinion - it was probably around 30-40K€. Choosing an Oy is about other things such as limited liability, but there are big toiminimis around employing several people (and other family companies that are Ky for example). I have never had a toiminimi so I can't really comment on that. We have had an Oy for many years and have changed the main line of business at least once and created an affiliated business (additional trade name) - it has worked OK for us. We don't employ anyone at the moment (except yours truly) but we have employed young people in the past, in the days when we ran an ice-cream kiosk.

If you are new to bookkeeping you should look for a local bookkeeper to do your accounts. It will save you a lot of hassle and is not necessarily very expensive. But look for one who speaks your language and is also prepared to give advice on things like improving your cash flow. I know someone whose bookkeeper never even told him about the VAT rebate calculation for companies with a low turnover!

(I commute between Pohja (near Fiskars), Olari and Helsinki at least twice a week - send me a PM when you're settled. )

[betelgeuse]

I've grown this year to the point where I'll be exceeding the maximum personal amount (8500e or so?), and when taxes come into it. Also, to the point where I'm thinking about bringing on an assistant/sewer/errand-runner to help me 2-3 times a week at my home office. In the last little bit, I've been averaging 100-150e a day (really only a half day from home), and I have thousands of clients worldwide.

8500 is the limit for value added tax. All amounts below are still taxable income that needs to be declared. However, because of deductions very little tax is due.

So, say you're me, Ms. OrangeCrush. Do I register as a TMI or continue to work under my own name? What would the next logical step for this growing business/hobby project I've got going on? I'm an on-the-up-and-up sort of person, and I have no desire whatsoever to play fast and fancy with the Finnish government's taxes. I shall be making an appointment to go see someone this week, but any info, advice, slaps upside the head (heh) are ALL welcomed.

Registering as a private trader means working under your own name. It's not a separate legal entity. Toiminimi in common speak is configured with yksityinen elinkeinoharjoittaja. Legally speaking toiminimi means a separate trade name of a private trader (or the names of separate legal entities). It's optional to have a toiminimi.

AND, would I post a "job opening" here after outlining the sort of help I'd need, do that on mol.fi...? I work in southern Finland less than an hour from Helsinki, but there would be the possibility to work from home now and then.

Both are free so I don't see why you wouldn't do both.

If you exceed the 8500e turnover in 12 months you have no choice but to register for VAT. The bad news is that it is retroactive on all your business in the 12 month period. On the other hand, some of your overseas sales will be exempt (outside the EU) and you will be able to claim back the VAT on your purchases, so it's unlikely that hitting the threshold will hurt too much this year, as long as you have been keeping track of all your sales and purchases.

Retroactivity can be avoided by founding an OY because it's a separate legal entity.

You can choose to become either a sole trader (Toiminimi) or an Oy (you need 2500e capital to start up) and both statutes enable you to hire other people (or consider buying their services as subcontractors ie, they invoice you for their work)

Remember that the 2500 is not an expense. It's just money that goes to the company bank account. You will have to pay PRH fees and bank account fees.

Yes, go back and find all your receipts. You will have to do some basic double-entry bookkeeping and regular VAT returns. My advice, apply for an annual VAT return schedule but watch your cashflow and ALWAYS respect the deadlines for tax returns.

Private traders also have the option to do single entry bookkeeping (unless you have a shop).

You will also have to pay YEL ie entrepreneur's pension contributions. No way out of that.

You can avoid YEL if the equivalent salary is under 7 502,14 euros.

http://www.etera.fi/tilitoimisto/yelvak ... EL-tyotulo

Rosamunda, you rock my world. I'll be meeting with someone this week to get the ball rolling on this. Will also read those links you've posted, and see what option is the best here. If I were going to target 30-50k a year (gross), is my best option TMI or Oy? I would have the 2500e with no issue, were I to go the OY-route.

TMI involves less bureaucracy but OY is more tax efficient if your personal tax rate is higher than the combo of corporate taxes + dividend taxes and income tax in an OY. You will need an accountant any way to navigate the Finnish system so they will be able to assist in the selection.

[OrangeCrush]

betelgeuse - You, too, rock my world. Just making sure that I get all this tax stuff correct for my beloved, adopted country of the previous several years.

Anyone else have personal experiences to relay, mainly due to the differences between Oy and TMI? OC

[OrangeCrush]

Rosamunda - We're moved and settling in now, so would love to invite you by for tea sometime in the near future. Hoping to get all the papers (and inquiry for potential start-up funds for the first bit) in this week. So, it'd be more of a "thank you for your kindness"-kind of tea, than a "please come by and hold my hand through this process"-kind of tea, haha.