Would you like to start your own business? Or do you already have a plan ready? Being self-employed means you choose what you do, who you work for and how you run your business. And that's fun, but you also have to make sure everything goes well. In this article, we tell you what you need to arrange and what choices you make when you start. And we also tell you what the advantages and disadvantages of being self-employed are.
Why become an entrepreneur?
More and more people are swapping their permanent jobs for life as an entrepreneur. Not surprisingly, because as an entrepreneur you determine your path entirely by yourself. You choose your own clients, work where and when you want and have no boss or endless meetings.
Especially self-employed people like this freedom. After all, you work independently and remain in charge of the overview. You also choose projects that really suit you. But you also have to take care of your own income, pension, insurance and administration.
Zzp'er or bv: which legal form do you choose?
Most start-ups start as self-employed people with a sole proprietorship. This is easy to start at the Chamber of Commerce. You don't need a notary for this. You also get tax benefits. Think of the self-employed deduction and starter's deduction. This means you pay less tax. But beware. In case of debts, you are personally liable.
But do you want to run less risk, collaborate with others or expect a lot of profit? Then a private limited company, a BV, might be better. You then have your own legal entity and are less likely to be personally liable. But be aware: a private limited company does cost more to set up and keep.
What do you need to arrange as a start-up?
Once you have made your choice, there are a few steps you really need to take to get off to a good start:
- Registration with the Chamber of Commerce: You register with the Chamber of Commerce for €82.25. After this, you will automatically get a VAT number from the tax authorities.
- Tax and returns: As a self-employed person, you do quarterly VAT returne and once a year income tax return. But do you have a private limited company? Then you pay corporate tax and often payroll tax for yourself.
- Administration: You also need to keep and store accounts properly. You can do this yourself with an accounting programme or have someone else do it for you.
- Insurance: Consider liability insurance, disability insurance and perhaps pension. This is not compulsory, but useful to protect yourself. Read here more.
- Business account: It is smart to keep your business money separate. A business account helps with this.
Advantages and disadvantages of entrepreneurship
Being an entrepreneur has many advantages. But, you can already feel it coming, there are also risks involved. It is important to consider these carefully before you start.
Advantages:
- You have complete freedom and can decide when and how you work.
- You choose who you work with.
- You build something that is truly yours.
- As a starter, you get tax breaks.
Disadvantages:
- You have no fixed salary or safety net.
- You are responsible for everything yourself.
- You are required to file VAT returns and keep your records.
- With illness or fewer assignments, it can sometimes be financially insecure.
Conclusion
So do you really want to become an entrepreneur? Then start with a clear plan. Take care of your administration, taxes and insurance. Choose the legal form that suits you. Build a network around you and start small if that makes you feel better. We are happy to give you useful tips and articles about starting as a self-employed person. From bookkeeping to marketing. Everything you need to get off to a good start. Take that chance and turn your entrepreneurial dream into something beautiful.
