4. What costs are involved in becoming self-employed?
If you start a business, it is best to take a number of costs into account. Although the exact details depend on various factors - company form, social status, income, interpretation - these costs will always be part of the equation.
- Formation costs: for a company you need start-up capital, for example as a sole proprietor, you pay your registration at the business counter.
- Administrative costs: if you need permits or request additional NACEBEL codes after your establishment, you will pay administrative and processing costs.
- Social contributions: you’ll pay social contributions to your social insurance fund every quarter. How your social security contributions are calculated depends on several factors.
- Accountant: a good accountant monitors the deadlines for your VAT returns, calculates your personal taxes and provides valuable advice.
- Insurance: it is best to invest in some smart insurance policies, especially for a main occupation, but also in a secondary occupation. Which insurance you need depends on your job content and status.
- Taxes: you pay VAT on every invoice you issue, so always set aside the amount of VAT you’ll need to pay pending your VAT return and the subsequent payment. In addition, you’ll pay corporate and/or personal taxes, depending on your company form.
Not sure which company type suits you best? Any other questions specific to your situation in IT? Then get free advice from the experts at Brainbridge to smoothly become self-employed