Become self-employed with an online business

Become self-employed with an online business
In a crisis in particular, it quickly becomes apparent how important it is not to be dependent on just one source of income. Employees have a certain amount of social security as long as the employer is doing well. Most employees, however, have little or no influence on decisions in the company. They are all the more affected when the company gets into an economic crisis.

But the need to be your own boss does not only increase when the employer is in an economic crisis. Many employees dream of becoming self-employed. To run your own company, albeit a small one, and to earn a side income with the online business, which may at some point be enough to be the main income.

Cushion income risks with your own business
Often times, when entrepreneurs need to cut costs, they find that their biggest cost is human resources. So it is not surprising that many companies try first to reduce personnel costs. In addition to the gross costs, there are also employers’ contributions for social security, professional association contributions, etc. If the crisis is short-lived, short-time work can be a solution. Often, however, there are protracted problems behind a crisis in the company.

For employees and workers of the company this means unemployment and the associated massive loss of income. If the crisis has hit an entire industry or even the economy, the job offers are manageable or even non-existent. Even after a year without a job, Hartz IV threatens. With the rate of the job center, the expenses can no longer be covered, because the personal costs do not suddenly decrease. Insurance, car and apartment or house need to be financed, people also want to go on vacation and subscriptions cannot be canceled overnight. In short: the costs keep on running, but the income is no longer enough.

Become self-employed online business – 1
It is important to prevent this, for example by creating reserves. However, families in particular have costs that often do not allow them to save regularly. An online business as a second pillar can then help to cope with a crisis economically. Starting the online business as a sideline ensures that you can slowly build up the business. There are numerous guides that show how to build an online business. In general, however, as with any other business, success is tied to work and time and needs to be well prepared. Now it’s not about galloping off headlessly and plunging into any online business, but proceeding strategically and deliberately.

The advantages of an online business are obvious. In addition to mostly minimal financial risk, especially in the initial phase, low start-up capital, high flexibility, maximum work-life balance are some of the other advantages of your own online business.

Think about the bureaucracy
There are a few important things to think about right from the start. A business license is usually required for doing business on the Internet. Even if it is a freelance activity, this must be communicated to the tax office. To do this, you register your online business with the tax office and receive a tax number.

Becoming self-employed online business – Tax
All profits generated must be taxed. To do this, it is advisable to purchase good accounting software or, even better, to seek help from a tax advisor.

The commercial knowledge that every business requires is often neglected or even forgotten. Unfortunately, this often leads to the fact that the business is successful, but fails due to the commercial administration. Incorrect bookkeeping or problems with (interim) financing are the most common reasons why newly founded companies fail.

With the small business rule there is, for example, an exception to sales tax: a company generated less than 22,000.00 euros in sales in the previous year (up to December 31, 2019 it was 17,500.00 euros) and in all probability will not generate more than in the current year 50,000.00 euros, the small business regulation can be applied for at the tax office. The company is then no longer subject to VAT. The ” and ” means that both requirements must be met. Because the small business regulation is particularly worthwhile in the area of ​​online business. There are often little or no investment costs from which input tax could be deducted.

The right choice of company form should also be considered in an online business: GbR, OHG; GmbH, UG, etc. In any case, a business must be registered and an entry in the commercial register may be necessary (GmbH).

A business account provides a perfect overview of company income and expenses . An expensive account at a branch bank is not necessary for this.

Online business accounts are not only cheaper, they also offer numerous additional features that can save a business owner a lot of time. The account opening takes only 48 hours and does not require presence at a bank counter. The online account contains everything that makes a good bank account. There is a German IBAN account number, VISA debit cards and the mandatory deposit protection up to 100,000 euros. The money is just as safe on a digital account as it is at any other bank.

Become independent online business – online banking
Business management support
Online business accounts such as those from Penta already offer an additional sub-account with the basic account. This makes it easy to split expenses and budgets. Debit cards are also available for employees, which simplifies the expense report. Employees simply pay for overnight stays or meals using the card, which has a limit. The possibility of synchronizing all financial transactions from the bank app to DATEV and many other accounting programs in real time is very innovative. This means that the tax advisor has all the data in the correct format.

Becoming self-employed online business – business management
The self-employed save so much working time that they can use for their customers. Receipts can be saved digitally and attached directly to the payment. This means that no time-consuming document search is necessary later. The company account can be operated intuitively on the desktop or via an app. Even a KfW quick loan can be accessed within 15 minutes . The account is also suitable for SEPA direct debit. So no customer can forget the payment and the income appears on the account on time.

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