A natural person\’s business can be divided into a self-employed person\’s main business and a side business. It is important to note that the type of work is the same whether it is a side business or a main business.
- Side jobs
As the saying goes, if you\’re not sure about cram flaking, you can try a side job. It is not as risky if you are employed part time or full time and slowly start your own business and pick up work. In the first year of business, the self-employed person is not obligated to pay for the side job. In addition, a self-employed person with a second job does not have to pay social security contributions at all if his or her profits for the year (in this case, 2020) are less than SEK 83,603. If profits are greater than this threshold, a minimum monthly advance payment is required, which for 2020 is SEK 1018.
- Major activities
For.
If the business is your only means of livelihood, it is already considered your primary activity. In this case, the advance is already higher. For self-employed persons who start a business as their primary activity, a minimum monthly social insurance advance of 2,544 (for 2020) is paid. The amount of the advance for the following year is determined based on the previous year\’s income. In addition, self-employed persons will also be eligible for health insurance and tax payments.
What are the obligations of a sole proprietor starting a business?
They must notify the tax office, the regional social security office (OSSZ), and the health insurance company. In order to register for income tax purposes, one must fill out an application for individual registration at the tax office; notify the OSSZ and the health insurance company that one is starting a business; and incur the obligation to make monthly advance payments. During the course of the year, you may need to switch from a second job to your main job or vice versa. This is of course possible. However, you must again notify the authorities of this change.