How to Set Up as a Freelancer: Country-by-Country Guide

United States

Registration

• EIN vs. SSN: Sole proprietors can use their Social Security Number (SSN). An Employer Identification Number (EIN) is free from the IRS and recommended for separating business and personal identity. Apply online at irs.gov — takes 5 minutes.
• Business structure: Most freelancers start as sole proprietors (no registration needed). Consider an LLC for liability protection ($50-500 depending on state).
• State registration: Some states require a business license or DBA ("doing business as") filing. Costs vary from $10 to $100.

Tax Obligations

• File Schedule C with your annual Form 1040
• Pay self-employment tax (15.3%) on net earnings over $400
• Make quarterly estimated tax payments (Form 1040-ES) on April 15, June 15, September 15, and January 15
• If you miss quarterly payments, you may owe an underpayment penalty

Timeline: Same day (EIN). Cost: $0-500 depending on state and structure.

United Kingdom

Registration

• HMRC Self Assessment: Register online at gov.uk by October 5th following the tax year you started self-employment. You will receive a Unique Taxpayer Reference (UTR) within 10 working days.
• National Insurance: You are automatically registered for Class 2 and Class 4 NI when you register for Self Assessment.
• VAT: Mandatory registration if turnover exceeds GBP 90,000. Voluntary registration is possible and may benefit B2B freelancers (to reclaim input VAT).

Tax Obligations

• File a Self Assessment tax return by January 31st (online) or October 31st (paper)
• Pay income tax and NI by January 31st, with a second payment on account by July 31st
• Keep records for at least 5 years

Timeline: 2-3 weeks. Cost: Free.

Germany

Registration

• Finanzamt registration: Within 4 weeks of starting business, complete the "Fragebogen zur steuerlichen Erfassung" (tax registration questionnaire). This is now done online via ELSTER.
• Freiberufler vs. Gewerbetreibender: Determine your classification. Liberal professions (Freiberufler: developers, designers, consultants, writers, etc.) do not need a Gewerbeanmeldung. Trade businesses (Gewerbetreibender) must register with the local Gewerbeamt and pay trade tax (Gewerbesteuer).
• Steuernummer: Received within 2-6 weeks of registration. Required on all invoices.
• VAT (Umsatzsteuer): Apply for a USt-IdNr if you do business with other EU countries. Kleinunternehmerregelung exempts businesses with revenue under EUR 22,000 from charging VAT.

Tax Obligations

• File annual Einkommensteuererklarung by July 31st (with tax advisor: end of February the following year)
• Monthly or quarterly Umsatzsteuervoranmeldung (VAT returns) via ELSTER
• Quarterly income tax prepayments (Einkommensteuervorauszahlungen)

Timeline: 2-6 weeks. Cost: Free (Freiberufler) or EUR 20-65 (Gewerbeanmeldung).

France

Registration

• Micro-entrepreneur: Register online at autoentrepreneur.urssaf.fr. Receive a SIRET number within 1-4 weeks. Revenue limits: EUR 77,700 for services, EUR 188,700 for sales.
• URSSAF: Automatic registration for social contributions when you register as micro-entrepreneur.
• Entreprise individuelle (EI): For higher revenue, register at the Guichet Unique (guichet-entreprises.fr). More complex but allows full expense deductions.

Tax Obligations

• Micro-entrepreneur: declare revenue monthly or quarterly to URSSAF (social charges: 21.1-22% of turnover). Income tax either via versement liberatoire (1-2.2% of turnover) or annual declaration.
• Full regime: annual income tax declaration, quarterly social contribution payments.
• CFE (Cotisation Fonciere des Entreprises): local business tax, first year exempt.

Timeline: 1-4 weeks. Cost: Free.

Netherlands

Registration

• KVK (Chamber of Commerce): Register in person at a KVK office. Costs EUR 75. You receive a KVK number immediately and a BTW (VAT) number within 2 weeks.
• Belastingdienst: You are automatically registered with the tax authority when you register at the KVK.
• ZZP status: To qualify for self-employed deductions (zelfstandigenaftrek), you must work at least 1,225 hours per year in your business and have multiple clients.

Tax Obligations

• File annual income tax return (aangifte inkomstenbelasting) by May 1st
• Quarterly BTW (VAT) returns via Mijn Belastingdienst
• Provisional income tax assessments (voorlopige aanslag)

Timeline: Same day (KVK) + 2 weeks (BTW). Cost: EUR 75.

Ireland

Registration

• Revenue Online Service (ROS): Register for income tax (Form TR1 for sole traders). Apply for a Tax Registration Number.
• VAT: Mandatory if turnover exceeds EUR 37,500 (services) or EUR 75,000 (goods).
• Companies Registration Office (CRO): Only needed if setting up a company. Sole traders do not need CRO registration.

Timeline: 2-4 weeks. Cost: Free.

Australia

Registration

• ABN (Australian Business Number): Apply online at abr.gov.au. Free and usually issued within minutes.
• GST: Register if turnover exceeds AUD 75,000. Lodge quarterly Business Activity Statements (BAS).
• Superannuation: Self-employed persons are not required to contribute, but it is tax-deductible and strongly recommended.

Timeline: Same day. Cost: Free.

Canada

Registration

• Business Number (BN): Apply at canada.ca or by calling the CRA. Free.
• GST/HST: Register if revenue exceeds CAD 30,000 in four consecutive calendar quarters.
• Provincial registration: Some provinces require additional registration (e.g., QST in Quebec).

Tax Obligations

• File Form T2125 (Business Income) with your annual T1 return by June 15th (but taxes owed by April 30th)
• Quarterly installment payments if you owe more than CAD 3,000

Timeline: 1-5 business days. Cost: Free.

Singapore

Registration

• ACRA: Register a sole proprietorship via BizFile+ (SGD 115 for 1 year, SGD 175 for 3 years).
• IRAS: File annual income tax return (Form B/B1). No separate registration needed.
• GST: Register if turnover exceeds SGD 1 million.
• MediSave: Self-employed persons must contribute to MediSave (8-10.5% of net income).

Timeline: 1-2 days. Cost: SGD 115-175.

Quick Comparison

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