Roadmap to starting self-employment

When you want to start self-employment and establish a business, you register with the Chamber of Commerce. You describe your activities, form of business and choose a business name. You also set up your administration and cover your entrepreneurial risks. How to do that is explained in this step-by-step plan.

1. When do you establish a business?

Self-employment can be handled in several ways. You can take on assignments and get paid by your client. Then you get paid by a payroll company and do not do any administration or business yourself. In addition, you can send an invoice for occasional assignments, which you declare on your income tax return. Will you regularly perform assignments that you want to invoice? Then that is considered "sustainable business" and you must officially register with the Chamber of Commerce (KVK). You can work as a self-employed person (zelfstandige zonder personeel) or maybe you want to hire staff.

2. Define your activities

What do you want to do within your enterprise? Is that one type of activity, or do you want to combine different things like performing, making, designing, teaching, for example? You can register several activities. When you are going to register with the Chamber of Commerce you specify these.

3. Choose a business form

Starting out as self-employed is usually done with a sole proprietorship. You can only have one of those. So if you undertake a variety of activities, they all fall under that one sole proprietorship. You can. With a lot of success (profit) a private limited company can be an option. In addition, in the cultural sector it is also not unusual to set up a foundation if you want to apply for subsidies more often - as a self-employed person you can then send an invoice to the (own) foundation. In this article you can read more about the foundation as a business form.

4. Choose a company name

Choose an appropriate and clear company name with which you can distinguish yourself. Under this name you will keep your records and you will use it in contact with the Tax Office, Chamber of Commerce and your customers (on invoices). Note that you have one company name, but you can use multiple trade names. This way you can easily have multiple brands or differentiate the services/products you provide. Because you can only have one sole proprietorship, it is smart that the name you register with the Chamber of Commerce matches any other trade names/brands you want to use.
Tip: also check right away if the web address you would like to use is available.

5. Register with the Chamber of Commerce.

Make an appointment at the Chamber of Commerce. Here you indicate that you want to establish a sole proprietorship, what kind of products or services you plan to provide and in what industry (your activities). During registration, so-called SBI codes are linked to these. Your business may fall under one or more SBI codes. You can change this at any time after registration. When a company is established, it is determined whether you are eligible for a VAT number.
Tip: make sure you inform yourself well via the KVK website about the incorporation requirements.

6. Open a business account

A business account is not mandatory if you own your own business. But it is convenient and clear to separate private and business expenses. A separate business account saves a lot of time in your administration and gives a professional appearance. You can also use a private account for business purposes, but make sure your bank allows it.

7. Set up your records

If you start a business, you also have the responsibility to keep clear records about it. Note that all your activities for your sole proprietorship must be processed in one administration. If you start a sole proprietorship, make sure that you keep good records of your hours to be eligible for the self-employed deduction (and possibly the starter's deduction). You can read more about income tax and sales tax (or VAT), among other things, in this article.
Tip: Are you in doubt about how best to keep your records? Then it may be wise to enlist the help of a financial advisor.

8. Insure

By insuring against damages, liability and loss of income, you reduce your entrepreneurial risks. Inventory your short-term and long-term risks. For example, consider business liability insurance, disability insurance, and retirement provisions. There are also special insurance policies for the arts and culture sector, such as equipment insurance for your valuables. Read more about insurance in the cultural sector here.

9. Establish general terms and conditions

You can also reduce your entrepreneurial risks by drafting general terms and conditions. This is not mandatory. They deal with expectations and liability between the provider and the customer. You can register these at the Chamber of Commerce, publish them on your website and in any case send them along with offers and/or contracts. See if you can use examples from your professional association, possibly have a lawyer look at it or outsource it.

10. Optimize your findability

Your business is established, now you also need to be (and remain) findable by potential clients and customers. For example, have your own website or profile on social media channels. You can also make a marketing plan in which you specify how you will market your product or service. Read more about good marketing and communication here.

Disclaimer: In writing this step-by-step plan for starting as self-employed, we have benefited greatly from the information on beroepkunstenaar.nl and kvk.nl.