registering and deregistering freelance activities
November 25, 2010 | 25,00 EUR | answered by Michael Herrmann
Dear Sir or Madam,
I am writing to you with what I hope is a simple problem:
I currently run a small "side business" in the form of web hosting and designing websites. This business is of course registered with the trade office and tax office.
I would like to close down and deregister this business by the end of the year, as I plan to offer seminars and further training as a freelancer next year in the form of first aid courses and emergency training (I am a paramedic and first aid instructor by profession, for the ambulance and rescue service).
In addition, I am currently in training to become a physiotherapist and plan to start my own practice at the beginning of 2012.
The upcoming freelance work for seminars and so on is aimed at generating start-up capital for the future practice.
Now my question is: can I simply deregister my current business, register as a freelancer, and then deregister at the end of next year to start a practice?
So the timeline would be as follows:
End of 2010 - Deregister web hosting/internet design business
Jan. 2011 - Register as freelancer for seminars/training
Dec. 2011 - Deregister freelancer activity
Jan. 2012 - Register as freelancer for practice
Do I run the risk of not receiving start-up grants or a start-up loan?
I would greatly appreciate your feedback.
Kind regards,
Dear inquirer,
First of all, thank you for your inquiry, which I would be happy to answer based on the information provided and in the context of your initial consultation. The response is based on the description of the situation. Missing or incorrect information about the actual circumstances can affect the legal outcome.
When it comes to self-employment, it is important to distinguish between commercial and freelance activities. Only certain professional groups are considered freelance. The activities mentioned in the seminar sector and the work as a physiotherapist can be classified as freelance.
You must register or deregister commercial activities with the trade office if they are no longer being carried out. Freelance activities do not need to be registered with the trade office, as they are not subject to the Commercial Code.
You must of course include these activities in your income tax return. A separate "registration" with the tax office is only necessary in advance if the determination or increase of advance payments for income tax is required due to the expected income. However, please note that the training to become a physiotherapist is already tax-relevant as a preparatory action for future practice, and therefore the freelance activity as a "physiotherapist" does not only begin at the start of the practice. You should seek detailed advice on this matter.
It is also not necessary for the activities to occur in a specific sequence. They can be carried out in parallel.
Regarding the legal consequences, as well as the situation for start-up grants and loans, I cannot make a judgment based on the presentation of the facts. In this regard, you should consult with the employment agency and the bank on a case-by-case basis.
I hope that this information has provided you with a sufficient overview of the situation within the scope of your inquiry and remain
Yours sincerely,
Michael Herrmann
Dipl. Financial Economist (FH)
Tax consultant
