Do I need a business registration as a freelancer?

No, freelancers (e.g., doctors, lawyers, designers, journalists, consultants) register directly with the tax office and don't need a trade license. Whether you count as a freelancer depends on your activity - in doubt, the tax office clarifies this.

How much startup capital do I need for self-employment?

This depends heavily on your industry. As a freelancer in the service sector, you often get by with a few hundred euros. Basically, you should have reserves for 3-6 months of living expenses, plus budget for basic equipment and initial marketing measures.

When must I register with the tax office?

Within 4 weeks after starting your activity, you must submit the "Tax registration questionnaire" to the tax office. This can be done online via ELSTER. You'll then receive your tax number, which you need for invoices.

Can I use the small business regulation?

Yes, if your sales in the previous year were under 25,000 € and will probably be under 100,000 € in the current year (new limits from 2025). As a small business owner, you don't show VAT - but also can't deduct input tax.

Do I need a tax advisor?

Not legally mandatory, but highly recommended. A tax advisor knows all funding opportunities and deduction possibilities, handles communication with the tax office and gives you security. The costs are often tax-deductible and pay for themselves through saved taxes.

Becoming Self-Employed: The Ultimate Checklist for Founders 2025

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The step into self-employment is exciting - and can be overwhelming. Between business registration, tax number and first invoice, there's a lot to consider. This checklist guides you through all important steps.

Phase 1: Before founding

Check business idea

[ ] Conduct market analysis
[ ] Define target group
[ ] Analyze competitors
[ ] Formulate unique selling proposition (USP)
[ ] Create price calculation

Financial planning

[ ] Calculate startup capital
[ ] Determine ongoing costs
[ ] Check financing needs
[ ] Plan reserves for the first months
[ ] Consider private fixed costs

Choose legal form

Legal form	Suitable for	Liability
Sole proprietorship	Solo founders	Unlimited
GbR	Team startups	Unlimited
UG (limited liability)	Startups with risk	Limited to share capital
GmbH	Larger ventures	Limited to share capital

Phase 2: Formal founding

Business registration (if commercial)

[ ] Contact trade office or use online registration
[ ] Apply for trade license (costs: 20-60 €)
[ ] Fill out trade registration (describe activity exactly)
[ ] Have ID/passport ready

Tip: Freelancers don't need a business registration - they register directly with the tax office.

Tax office: Tax registration questionnaire

[ ] Fill out questionnaire online via ELSTER
[ ] Provide estimated sales and profits
[ ] Check small business regulation (limit: 25,000 € / 100,000 €)
[ ] Choose cash-basis or accrual accounting
[ ] Receive tax number (takes 2-4 weeks)

Further registrations

[ ] IHK/HWK membership (automatic with business registration)
[ ] Professional association (accident insurance)
[ ] Artists' social insurance fund (if applicable)
[ ] Commercial register (for corporations)

Phase 3: Insurance

Mandatory insurance

[ ] Clarify health insurance (statutory or private)
[ ] Professional association (accident insurance)
[ ] Check pension insurance (mandatory for certain professions)

Recommended insurance

[ ] Professional liability insurance
[ ] Business liability insurance
[ ] Disability insurance
[ ] Legal protection insurance

Phase 4: Business equipment

Basics

[ ] Open business account (separation private/business)
[ ] Set up accounting software
[ ] Choose invoicing software
[ ] Email address with own domain
[ ] Phone number (business)

Legal

[ ] Create terms and conditions (if needed)
[ ] Privacy policy
[ ] Imprint (for website)
[ ] Create contract templates

Marketing basics

[ ] Logo and corporate design
[ ] Business cards
[ ] Website
[ ] Social media profiles

Phase 5: Set up accounting

Fundamentals

[ ] Choose accounting method (EÜR or balance sheet)
[ ] Set up chart of accounts (SKR03 or SKR04)
[ ] Define document organization
[ ] Observe retention obligations (10 years)

Software decisions

[ ] Select accounting software
[ ] Set up invoicing software
[ ] Connect online banking
[ ] Hire tax advisor (optional but recommended)

First invoices

[ ] Create invoice template with all mandatory information
[ ] Define invoice numbering system
[ ] Prepare e-invoicing (mandatory from 2025)
[ ] Define payment terms

Phase 6: First steps in daily business

Customer acquisition

[ ] Activate network
[ ] Compile portfolio/references
[ ] Develop acquisition strategy
[ ] Create first quotes

Manage projects

[ ] Get quotes confirmed in writing
[ ] Set up time tracking
[ ] Keep project documentation
[ ] Issue invoices promptly

The most important deadlines

Deadline	What?
Before starting activity	Business registration
4 weeks after start	Tax office questionnaire
Monthly/Quarterly	VAT advance return
July 31 (with tax advisor: Feb. 28)	Tax return previous year

Avoid common mistakes

Mistake 1: No separation private/business

Open a separate business account from the start. This saves a lot of trouble with the tax office later.

Mistake 2: Underestimate taxes

Set aside at least 30-40% of your income for taxes. Income tax and VAT will come for sure.

Mistake 3: No reserves

The first months can be difficult. Plan reserves for at least 6 months.

Mistake 4: Prices too low

Calculate your hourly rate carefully. As a self-employed person, you have to finance health insurance, pension, vacation and downtime yourself.

Mistake 5: No written agreements

Record all agreements in writing - quotes, order confirmations, contracts. This protects you in disputes.

Conclusion

Self-employment requires some bureaucratic steps - but with the right checklist, you keep track. Take the time to set everything up properly. A clean start saves a lot of trouble and costs later.

With Clever Invoice, you're professionally set up from the first invoice: All mandatory information is automatically correct, e-invoices are possible, and your accounting is clear from the start.