· Camilla Pesonen · light-entrepreneurship · 7 min read
Invoice Without a Company – How to Benefit from Light Entrepreneurship
Invoicing without your own company has become common in many industries. Light entrepreneurship allows entrepreneurial activities without establishing your own business ID. Explore the advantages of light entrepreneurship and practical tips in this article.
Table of Contents
- Invoice Without a Company
- Why Invoice Without Your Own Company Instead of Getting a Business ID?
- Can a Private Individual Invoice a Company?
- Are You an Entrepreneur or an Employee?
- How Does Invoicing Without a Company Differ from Working with a Tax Card?
Invoice Without a Company
When you want to invoice without your own company, the easiest way to start is by registering as a light entrepreneur with an invoicing service. Light entrepreneurship allows you to operate entrepreneurially without the need to establish your own business ID, as you use the invoicing service’s business ID for billing.
As a private individual, utilizing an invoicing service offers the opportunity to earn additional income. More and more people are offering their services or selling products without the traditional business structure. In this article, we dive into the world of invoicing from a private individual’s perspective and explore how you can invoice easily without your own company, without bureaucracy. Invoice without a company!
Invoicing without your own company opens new opportunities for those who want to sell services or products on their terms. Many private individuals wonder: “How can I invoice without a company?” This article provides a comprehensive guide and solutions to this common question.
Why Invoice Without Your Own Company Instead of Getting a Business ID?
Starting your own company is a big decision and can feel daunting and difficult for many. Invoicing your own work without a company has become common and is now the norm in many industries. An invoicing service is the perfect tool for this need.
If your business is just starting and you don’t yet have a steady customer base, invoicing without a company as a light entrepreneur is often an easier and less risky option. Light entrepreneurship is often a viable solution when the work is seasonal or otherwise difficult to predict.
Establishing a sole proprietorship is not difficult, but it also means taking on the responsibilities and obligations of an entrepreneur. If you use an invoicing service like bisse.fi, your only obligation is to pay YEL contributions if the YEL conditions are met. Running your own business often involves fixed costs such as insurance and accounting. While starting a sole proprietorship is easy, you need to manage invoicing, collections, prepayments, VAT, possible YEL payments, accounting, and financial statements yourself.
Although accounting can be outsourced, accounting costs must be paid even when there are no customers. If you do the accounting yourself, it’s worth calculating the cost of your hourly work when considering different options.
At bisse.fi, you can also easily choose a service package that includes accident and liability insurance according to the terms of use and insurance conditions. As an entrepreneur, you must obtain the necessary insurance by contacting insurance companies yourself.
Freelance Services and Their Growing Popularity
More and more individuals are taking matters into their own hands by offering freelance services to other people or companies. Freelance and gig work allow for working on your schedule and offer flexibility that attracts both professionals and service buyers. For example, a designer, consultant, or coder can invoice without a company, tap into a growing market, decide how much to charge for their work, and offer their expertise without a formal business structure, even internationally.
Small Projects and One-Off Tasks
Individuals often participate in smaller projects or take on one-off tasks without the need to commit to maintaining a formal business. This can include temporary gigs like event planning, photography, or writing. Invoicing without a company allows individuals to seize opportunities and earn extra income without a significant commitment – light entrepreneurship is perfectly suited for this.
Can a Private Individual Invoice a Company?
Invoicing companies as a private individual is possible and can open new business opportunities. In this section, we will take a closer look at these possibilities and also address potential restrictions and requirements.
Invoicing a Company as a Private Individual
Many companies are open to working with private individuals and paying for their services or products. This is especially true in situations where a private individual offers specialized expertise, such as design services, consulting, or other professional assistance.
Project Work
Individuals can participate in projects and invoice companies for project-based tasks.
Freelance Services
Many companies seek professionals to perform freelance work, and individuals can invoice companies for the services they provide.
Can Services Be Sold Without a Company – Invoicing Restrictions and Requirements
While it is possible to invoice companies as a private individual, it is important to consider potential restrictions and requirements:
Tax Considerations
When invoicing as a private individual, it is crucial to understand local tax regulations and ensure that all taxes are properly paid. Operating as a light entrepreneur through an invoicing service is generally the safest way to ensure that taxes and other obligations are handled legally.
Contracts and Responsibilities
A private individual must be careful when making agreements with companies to ensure that both parties understand their duties and responsibilities. Make sure that all terms and prices of services are clearly stated in the contracts. Ambiguities can lead to payment issues and conflicts.
Taxation
Income from sales may be taxable, and it is important to know the local tax rules. Depending on the laws of the region, income may need to be reported to the tax authorities. Using the bisse.fi service allows you to focus on your work while our invoicing service takes care of the bureaucracy for you.
Licenses and Permits
In some cases, selling certain services may require special permits or licenses. For example, certain consulting fields might have professional qualification requirements. Operating heavy machinery requires special permits. It is important to note that licensed work cannot be performed through the bisse.fi invoicing service as a light entrepreneur. In such cases, sole proprietorship might be a much better option.
Insurance
Even if you are not officially registered as a business, it might be beneficial to consider liability insurance, especially if you offer services that could pose risks. Through bisse.fi, it is also possible to obtain liability and accident insurance for job assignments.
In general, the possibility to invoice companies as a private individual exists, and many small entrepreneurs and freelancers successfully utilize this opportunity. However, it is important to be aware of local regulations and ensure that all aspects related to the invoicing process, permits, and insurance are properly managed. As a user of an invoicing service, you can always ask customer service for guidance on how to operate as a light entrepreneur in these matters.
Are You an Entrepreneur or an Employee?
From the perspective of taxation and accounting, you are considered an employee. However, according to the amendment to the Unemployment Security Act effective January 1, 2016, you are regarded as an entrepreneur for unemployment benefits. Furthermore, based on the decision by pension insurance companies, you have been considered subject to entrepreneurial pension insurance (YEL) since May 1, 2017, if the conditions are met.
How Does Invoicing Without a Company Differ from Working with a Tax Card?
When working with a tax card, your client must handle all payroll-related obligations, which can be time-consuming. Many find this cumbersome, time-consuming, and even daunting. Why spend hours dealing with taxes on top of paying for services? Through our service, all the bureaucracy is taken care of for you, and the client only needs to pay the invoice. When you invoice through bisse.fi, purchasing your services becomes significantly easier!
