Most common mistakes when registering as self-employed
Posted: Wed Jan 22, 2025 10:33 am
At MÁSMÓVIL Negocios we know that starting a business is not an easy task, so we always look for ways to help you when it comes to taking the plunge and setting up your own business. In today's post we want to review the most common mistakes when registering as self-employed.
The most common mistakes when registering as self-employed
Certain widespread errors can cause you more than one setback . For this reason, the best thing you can do is hire the services of a management company . In many cases, for a monthly fee that is not too high, your managers will take care of processing everything necessary, including invoices . In addition, they are professionals who know everything about the obligation to register as self-employed and other processes .
For example, something as simple as choosing the correct heading to classify your professional activity, or knowing which activities are exempt from VAT , can be a problem if not done correctly. That is why the role of the manager is so important. The truth is that, whether or not you have a management company, you should be aware of the most common mistakes so as not to make them .
self-employed Spain
You may also be interested in: The most common tax errors among self-employed workers and how to avoid them
We start with the most common mistake. It is mandatory to lithuania phone number lead register with the Special Regime for Self-Employed Workers (RETA) before or at the same time as starting economic activity. However, many people are unaware that they must also register with the Treasury . This "forgetfulness" can result in a fine of up to €3,000 .
On the other hand, many self-employed workers do not benefit from the flat rate because they are unaware of its existence or the requirements to qualify for it. Registering without knowledge can lead to losing the flat rate during the first year .
Furthermore, as we mentioned earlier, it is important to properly record the economic activity in the corresponding section of the IAE (Tax on Economic Activities). If this is not done correctly, there may be problems with the Treasury later on.
self-employed invoice
In line with the above, if you register for the IAE but are unaware of the possible bonuses or exemptions, it may mean unnecessary expenses. In addition, if you do not choose the Social Security coverage appropriately , such as the contribution for cessation of activity or coverage for work accidents and occupational diseases, you may end up at a disadvantage.
We also mentioned that certain economic activities are exempt from VAT , but others are not. Choosing a contribution base below your actual income may seem like a good idea to pay less, but it could affect future benefits.
On the other hand, in addition to the typical delays in procedures or a lack of financial planning that causes liquidity problems, one of the most common mistakes when registering as self-employed is not notifying the Tax Agency of the start of the activity through the census declaration ( forms 036 or 037 ). The penalty in this case can reach €3,000.
Last but not least, you need to be aware of the regulations in your area and taking into account your activity. Not completing the necessary procedures with the corresponding town hall, such as obtaining opening or activity licenses if necessary, can lead to problems with the Treasury. For example, a dental laboratory must comply with a series of requirements depending on the area in which it is located.
The most common mistakes when registering as self-employed
Certain widespread errors can cause you more than one setback . For this reason, the best thing you can do is hire the services of a management company . In many cases, for a monthly fee that is not too high, your managers will take care of processing everything necessary, including invoices . In addition, they are professionals who know everything about the obligation to register as self-employed and other processes .
For example, something as simple as choosing the correct heading to classify your professional activity, or knowing which activities are exempt from VAT , can be a problem if not done correctly. That is why the role of the manager is so important. The truth is that, whether or not you have a management company, you should be aware of the most common mistakes so as not to make them .
self-employed Spain
You may also be interested in: The most common tax errors among self-employed workers and how to avoid them
We start with the most common mistake. It is mandatory to lithuania phone number lead register with the Special Regime for Self-Employed Workers (RETA) before or at the same time as starting economic activity. However, many people are unaware that they must also register with the Treasury . This "forgetfulness" can result in a fine of up to €3,000 .
On the other hand, many self-employed workers do not benefit from the flat rate because they are unaware of its existence or the requirements to qualify for it. Registering without knowledge can lead to losing the flat rate during the first year .
Furthermore, as we mentioned earlier, it is important to properly record the economic activity in the corresponding section of the IAE (Tax on Economic Activities). If this is not done correctly, there may be problems with the Treasury later on.
self-employed invoice
In line with the above, if you register for the IAE but are unaware of the possible bonuses or exemptions, it may mean unnecessary expenses. In addition, if you do not choose the Social Security coverage appropriately , such as the contribution for cessation of activity or coverage for work accidents and occupational diseases, you may end up at a disadvantage.
We also mentioned that certain economic activities are exempt from VAT , but others are not. Choosing a contribution base below your actual income may seem like a good idea to pay less, but it could affect future benefits.
On the other hand, in addition to the typical delays in procedures or a lack of financial planning that causes liquidity problems, one of the most common mistakes when registering as self-employed is not notifying the Tax Agency of the start of the activity through the census declaration ( forms 036 or 037 ). The penalty in this case can reach €3,000.
Last but not least, you need to be aware of the regulations in your area and taking into account your activity. Not completing the necessary procedures with the corresponding town hall, such as obtaining opening or activity licenses if necessary, can lead to problems with the Treasury. For example, a dental laboratory must comply with a series of requirements depending on the area in which it is located.