Our goal is to make life easier for you as a freelancer in so many ways as possible. Many hesitate of starting their own company because of the concerns about the administration and paperwork. That is one of the main reasons why we have a collaborations with Win Win Ekonomi. Ludvig, CEO at Win Win Ekonomi, will tell you more about why they are so passionate about working with entrepreneurs and things you should keep in mind when you are flying solo.
Ludvig says hi
I have helped freelancers and small consulting companies with all of their questions, big and small, regarding starting or managing their own company for ten years. I have seen hundreds of consultants leaving jobs that they are tired of, because of bosses that are not good enough or tasks that do not stimulate them, just to start their own business. I often meet them when they are in the start up phase. Something always happens in that phase. The under-stimulated consultant suddenly gets a fire in their eyes and a lot of ideas come up to the surface that they want to carry out in the new company. A new journey begins.
One of the most common questions I get to answer is the choice regarding company type. Below, I have made a comparison between a Swedish Aktiebolag (AB) and an Enskild Firma, which are the two most common company types in Sweden.
↑ More tax advantageous. You will have the option to pay out a low taxed dividend in addition to your normal salary. With an annual turnover of 1 MSEK you will be able to receive about 100k SEK more if you have an Aktiebolag, compared to an Enskild firma.
↑ You will have more opportunities for benefits such as friskvårdsbidrag and gifts.
↑ The company is its own legal entity and the basic rule is that the owner has no personal responsibility for the company’s debts.
↑ You will make a more serious impression when in contact with clients, banks and authorities.
↑ The company automatically receives a name protection throughout the country.
↓ Requires a capital of 25,000 SEK.
↓ Is harder to liquidate.
↑ Easy to start, easy to liquidate.
↑ No capital is required.
↓ It can be difficult to keep the private economy separated from the company’s finances.
↓ The owner is solely responsible for all the company’s obligations.
↓ On the profits you pay income tax, which means that income above the breaking point for state tax is taxed at about 50%.
*We recommend a Swedish Aktiebolag because the benefits are so beneficial
The fact that I am able to participate in ideas and potential investments is one of the most fun parts of my job, being (at least) a small part in the whole process of you reaching your dream; either if it is being able to retire early, growing your company or just have more free time. It is about finding a combination of dreaming big and earning money at the same time.
4 things you should
keep in mind
→ Plan your withdrawals of salary and your dividends. The possibility of low-tax dividend is the single biggest advantage of having your own company compared to being employed.
→ Digitize your books. Work in a cloud-based system where you and the accounting consultant can work together without having to add data multiple times. A digital and automated accounting system means that your accounting is always updated – which allows you to make decisions based on it. In fact, this is one of the basic ideas of accounting.
→ Find someone who can keep you updated on everything that is happening and can affect your company. You can miss out on deductions you just because you can not keep track of everything new. With that said, invest in your network!
→ Make time to meet with suppliers and customers. Physical meetings create relationships. Relationships create loyalty. Together it creates value.
The “boring” part of the job as a freelancer, is our expertise. Too many self-employed are doing simple mistakes and we want to be here and help with that. Some people want to manage the administration and learn how to do it themselves for money saving reasons. However, what you should not forget is that the time you spend on administration is also time that you could spend working, and earn more money.
We want to help
We are teamed up with companies that we really like, trust and who we know are experts in their area, so that we can make your life as a freelancer a little bit easier. Win Win Ekonomi is one of our collaborations that we are very glad and proud over. They have a special offer and price targeted at freelancers. Interested in knowing more? Contact Amanda, our Freelance Partner, at email@example.com / 0720902852