Becoming an entrepreneur is easier than most people think. To become an entrepreneur one only has to be enterprising. As soon as you do something besides "the job at the employer" you may already have become an entrepreneur. Many people think that permits, diplomas or financial matters are required first. One sometimes sees a mountain against the registration with the Chamber of Commerce or the matters that have to be arranged with the tax authorities. This is sometimes even the reason why people are not yet ready to become entrepreneurs. Starting business can be much easier!
SOURCE: https://pixabay.com/en/report-request-resources-agreement-3183779/
Barriers to becoming an entrepreneur:
- Chamber of Commerce
Registration with the Chamber of Commerce is by no means always compulsory. Of course, there are some situations where this is the case, but they are often also clear. Think of a discotheque, general practitioner or other function where the consequences can no longer be overseen.
Officially you will also have to register directly to become an entrepreneur as a party planner, hairdresser, copywriter or stylist, but if you start with a business plan, your first customers are simply acquainted with you, or if you have very little time at the beginning doing business can be easily started as a hobby.
So you can gain some experience, work quietly on the professionalization of your company and just taste if entrepreneurship is really something for you. Eventually, the moment comes once when you have to register, but in many cases, you have a lot of influence on this yourself. For example, you only register when you are sure that you want to become an entrepreneur.
- The tax authorities
A real barrier because the tax authorities have strict rules for entrepreneurs. Before one can become an entrepreneur for income tax, for example, an hour criterion must be obtained and of course, the accounting must be in order. Becoming an entrepreneur for the tax authorities do not actually have any disadvantage. It is limited to the extra administration and that is easy to oversee or outsource to a friendly accountant.
The additional administration that comes with it when you want to become an entrepreneur, is often considerably overestimated. Of course, there are obligations, but if you are very active and earn money with a hobby, you are also obliged to report this to the tax authorities. On the Tax return for private individuals, you must state this as: "Income from other activities".
If you are seen as an entrepreneur by the Dutch Tax and Customs Administration, this actually entails tax benefits if certain conditions are met. Entrepreneurs can get a higher tax-free foot and business costs become cheaper. And that accounting? With a good accounting program, that is now a piece of cake.
- Licenses & diplomas
Previously, one had to obtain a certain degree to become an entrepreneur. This is now only the case with certain professions. To start a butcher's shop, of course, permits are needed otherwise everyone can just slaughter a cow and say that he is a butcher. Permits are also required for working with hazardous substances, for example. But for most products or services by far no diploma or license is required. That way everyone can take action.
Is there then absolutely nothing necessary to become an entrepreneur?
Yes. Certainly. It is especially important to know the psychological aspects of entrepreneurship. In this way, you (and your partner) get off quite a bit when you become an entrepreneur. Think of things like perseverance, making choices, irregular income, dealing with setbacks, negotiating, presenting, daring to take risks, setting priorities, being able to take matters away from you, dealing with irregular working hours, having financial insight. Especially these types of factors determine the chance of success for an entrepreneur.
You can outsource financial matters and if you are bad in sales you can hire someone for this. But to determine your hourly rate or to understand whether you should give a discount on a deal, that you can invest or not, you still need insight into these matters. Furthermore, we often hear from entrepreneurs that additional matters are so important. The cozy cup of coffee in the morning break with colleagues, for example, can have a lot of influence on your job satisfaction. What if this is suddenly no longer there because only work at home? The drive and personality of the entrepreneur, therefore, determine for at least 75% the success of the entrepreneur.
Becoming an entrepreneur for the tax authorities
There are two different types of taxes for small businesses (with a sole proprietorship as a corporate form ). An entrepreneur can be considered for sales tax (VAT traffic) and income tax.
Sales tax
The first is simply that VAT should be charged to customers and that this should be paid periodically (usually per quarter) to the Tax and Customs Administration's account. Whether this is interesting can be calculated quickly. Expensive car of the case purchased? New computer purchased? Business costs incurred and little business income? Then this is the moment to register with the Chamber of Commerce and the Tax Authorities and to take account of turnover tax (VAT).
Income tax
In order to be regarded as an entrepreneur for the income tax, higher requirements are required. This because there are more benefits. In this way, entrepreneurs get a decent self-employed allowance in the first few years. A part of the income may be earned tax-free. This can sometimes amount to ten thousand euros! Requirements have to be met for this and perhaps the most important thing is that at least 1225 hours must be spent on the company in that calendar year (January - December).
If it starts in September it will never work again and it may be interesting to go to the Chamber of Commerce to sign up only on 1 January. Then not a year of start-up tax deduction will be lost