For sole traders
Effortless sole trader business! From us you get an invoicing service, accounting and tax returns done for you, plus user support always at hand online and by phone.
Pricing
Becoming a sole trader through an invoicing service
Running a sole trader business involves a lot of bureaucracy. As a sole trader, it’s important to handle the reporting and payment of taxes. You need to find an accountant to keep your company’s finances up to date. As a sole trader, you should make sure you have insurance to protect your business.
As a sole trader with PalkkaOnline, you’re not left on your own. You handle your company’s invoicing and accounting effortlessly. We take care of your tax and VAT returns for you and guide you through paying your taxes. We also handle your YEL insurance application for you together with our partner Ilmarinen.
As a sole trader using PalkkaOnline’s invoicing service, everything related to running a sole trader business is handled in one place. Being a sole trader couldn’t be more effortless!
Pricing
Invoicing service, accounting, tax returns done for you, plus user support always at hand online and by phone.
- Tax return filing
- Liability insurance €1,000,000
- Legal expenses insurance €20,000
- Accounting
- User support online and by phone
Pricing
Becoming a sole trader through an invoicing service
Running a sole trader business involves a lot of bureaucracy. As a sole trader, it’s important to handle the reporting and payment of taxes. You need to find an accountant to keep your company’s finances up to date. As a sole trader, you should make sure you have insurance to protect your business.
As a sole trader with PalkkaOnline, you’re not left on your own. You handle your company’s invoicing and accounting effortlessly. We take care of your tax and VAT returns for you and guide you through paying your taxes. We also handle your YEL insurance application for you together with our partner Ilmarinen.
As a sole trader using PalkkaOnline’s invoicing service, everything related to running a sole trader business is handled in one place. Being a sole trader couldn’t be more effortless!
Pricing
Invoicing service, accounting, tax returns done for you, plus user support always at hand online and by phone.
- Tax return filing
- Liability insurance €1,000,000
- Legal expenses insurance €20,000
- Accounting
- User support online and by phone
Comparison
Light entrepreneurship or a sole trader business
| Light entrepreneur | Sole trader | |
|---|---|---|
| Getting started | Quick, with no need to set up a company | Requires setting up a company |
| Registration | 0 € | 0 € |
| Service fee | 1.9 % | 89 €/month |
| Accounting | X | X |
| VAT deductions | X | |
| Business ID | X | |
| Tax deductions | X | X |
| Insurance | 1.5 % | X |
| YEL insurance | X | X |
| Invoice collection | X | X |
| Advance salary | X | X |
Sole trader business
A sole trader's responsibilities
As a sole trader, it’s important to handle the reporting and payment of taxes. PalkkaOnline takes care of your tax and VAT returns for you and guides you through paying your taxes. A sole trader has to take care of their own insurance and social security. You can get your social security – that is, YEL insurance – conveniently from us through our partner Ilmarinen.
The advance tax is left for the sole trader to handle. The advance tax is the entrepreneur’s income tax and you should apply for it yourself on the vero.fi website. We’re here to help and assist you with handling these matters. Don’t hesitate to get in touch with our customer service!
For sole traders
A handy dashboard
You get real-time information about your company’s finances and can make decisions based on accurate data. Our interface is designed to be simple and efficient, so you can take the actions you need effortlessly.
PalkkaOnline
Why choose PalkkaOnline as your partner?
PalkkaOnline is a clear, effortless and easy-to-use invoicing service. When you need it, background support for using the service is at your disposal. Our customer service is here for you.
There are no hidden costs in the PalkkaOnline service. We’re refreshingly open in everything we do. Our service is backed by the entrepreneurs’ more than 50 years of experience in business insurance.
We take the dull and painful paperwork out of your self-employment, so you can focus fully on doing your work. That’s worth real money, since many ordinary entrepreneurs spend expensive working hours on paperwork. And you’re not left on your own in situations where your client doesn’t pay the invoice on time. If you wish, we’ll also handle invoice collection.
Your only job is to do your work well and send the invoice through PalkkaOnline. We take care of remitting your taxes and the payments that apply to every entrepreneur on your behalf. You receive payment for your work as salary into your account. Easy and effortless for you!
Sole trader business
How to start a sole trader business
Starting a sole trader business is as easy as getting started by registering for the PalkkaOnline service. You can use an existing business ID when registering. If you don’t yet have a business ID, we can set one up for you.
We handle your business’s tax return for you every year. We do VAT returns monthly, quarterly or annually according to your own VAT cycle. We’ll be in touch with you about these and ask for any additional details we need.
- Register for PalkkaOnline
- Use an existing business ID or set one up through us.
- Enter your details, services and products into the system
- Start invoicing
- If any questions come up, don’t hesitate to get in touch with our customer service at [email protected]
Sole trader business
How to start a sole trader business
Starting a sole trader business is as easy as getting started by registering for the PalkkaOnline service. You can use an existing business ID when registering. If you don’t yet have a business ID, we can set one up for you.
We handle your business’s tax return for you every year. We do VAT returns monthly, quarterly or annually according to your own VAT cycle. We’ll be in touch with you about these and ask for any additional details we need.
- Register for PalkkaOnline
- Use an existing business ID or set one up through us.
- Enter your details, services and products into the system
- Start invoicing
- If any questions come up, don’t hesitate to get in touch with our customer service at [email protected]
YEL
YEL insurance
YEL insurance safeguards your income if you fall ill, lose your ability to work or take family leave. Every YEL contribution increases your pension and improves your other social security. As a light entrepreneur, you can deduct your YEL insurance contributions in your taxation. YEL insurance also applies to part-time entrepreneurs if the income threshold mentioned below is met. It can also be taken out voluntarily, even if the threshold isn’t exceeded.
YEL insurance is mandatory for all entrepreneurs if the following conditions are met:
- you are at least 18 years old,
- you work as an entrepreneur continuously for at least four months,
- and your YEL earned income is at least €9,423.09 per year in 2026.
The amount of the YEL contribution is determined on the basis of the so-called earned income that the entrepreneur defines themselves. The YEL contribution rate is 24.40 percent of YEL earned income for all entrepreneurs. YEL insurance must be taken out within six months of starting your business at the latest. If you’re a brand-new entrepreneur, you’ll get a significant discount on your contributions in the early stages.
For most entrepreneurs, YEL insurance is the most significant insurance cost, but it’s a fully tax-deductible expense.
In partnership
FAQ
Frequently asked questions about sole trader business
A sole trader, i.e. a private business operator. As a sole trader, you get a business ID, that is, a Business Identity Code.
Both are ways of being self-employed. As a sole trader, you set up your own business and get a business ID. You’re entitled to deduct business purchases in your taxation. Setting up a sole trader business creates a company, which brings the entrepreneur more responsibility and commitment.
Light entrepreneurship is a form of self-employment in which you operate as a private individual through an invoicing service. A light entrepreneur can work without a company of their own and invoice the work they’ve done through the invoicing service. The light entrepreneur is only responsible for sending the invoice through PalkkaOnline.
When moving from light entrepreneur to sole trader, you need to take the tax return into account. When you change your business form to a sole trader business, you need to bear in mind that there are differences in the tax returns. As a light entrepreneur, you’ve been taxed like an employee, with PalkkaOnline remitting your income tax and the VAT on your sales to the tax authority. You’ve been able to report all your income and deductions in your tax return. As a sole trader, you also have to fill in a business tax return, where you enter the income and expenses for your business ID.
Accounting, in which you keep records of income and expenses. The business tax return is filled in based on that.
YEL insurance must be taken out if your income is over €785.26 per month, that is, over €9,423.09 per year. If you already have YEL insurance from your light entrepreneurship, remember to report the change of business form.
Becoming a sole trader through PalkkaOnline is easy.
- Register for PalkkaOnline
- Fill in your own details
- Complete identity verification
- You get your business ID to use
Setting up a sole trader business is best suited to an entrepreneur who intends to work on their own and has no plans to hire other staff. A private business operator works full-time or part-time as a small entrepreneur, making use of their own professional skills.
It’s also worth remembering that you are personally liable for all the commitments you make.