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What is light entrepreneurship?

Light entrepreneurship is a way to sell your work and skills without having to start your own business or look for a job.

There is no initial capital required to start a light business, no accounting or financial paperwork for the entrepreneur. You can also work as a light entrepreneur alongside your paid work.

Social security for the light entrepreneur

For tax purposes, you are an employee as a light entrepreneur. As a light entrepreneur, you are not obliged to keep accounts, so you do not need to hire an accountant or register for VAT.

When you invoice your client's company through PalkkaOnline, the correct VAT is added to your invoices according to your industry, and we invoice the tax authorities on your behalf.

In practice, most light entrepreneurs are classified as part-time entrepreneurs by the TE Office.

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Insurance for light entrepreneurs

There are many different types of insurance available. Many of them are voluntary. An important factor when considering insurance is your industry: the type of work you do, the equipment you use and the liabilities involved. For example, a light contractor doing face painting at events will need different insurance cover than a construction contractor using heavy machinery on a building site.

PalkkaOnline has lots of experience in the insurance industry and we have developed an insurance package for you in cooperation with LähiTapiola.

Liability insurance gives you financial protection in the event of damage caused by your business or a defective product.

Accident insurance helps you better support yourself in case of disability and speed up your return to work.

YEL is required under certain conditions. YEL covers the self-employed person's pension after a career.

YEL insurance

YEL insurance covers 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 cover. As a light entrepreneur, you can deduct YEL contributions from your tax bill. YEL insurance also applies to self-employed persons working part-time, provided that the income threshold mentioned below is met. It can also be taken out on a voluntary basis, even if the limit is not exceeded.

YEL insurance is required if the following conditions are met:

The amount of the YEL contribution is determined by the self-employed person on the basis of his or her so-called earned income. The YEL contribution is a certain percentage of the YEL earned income (in 2023 either 24.1% or 25.6%, depending on the age of the entrepreneur). YEL insurance must be taken out at the latest six months after starting a business. However, if you are a brand new entrepreneur, you will get a significant discount on your initial contributions.

YEL insurance is the most significant insurance expense for most entrepreneurs, but it is a fully tax-deductible expense.

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Why would I be a light entrepreneur and not a regular employee?

Becoming a light entrepreneur is fascinating to a lot of people mostly because of the same reasons when it comes to entrepreneurship in general. The number one is probably personal freedom. You can decide when and for whom you work and at what price. And as a light entrepreneur, you don't have to wait for payday - you can invoice when you want. You can also choose your own statutory pension level (YEL). We can help you with this, as we have a wealth of experience in the insurance sector.

So, as a light entrepreneur, it's easy to get a taste for entrepreneurship. You don't need capital to start a light business. It's also often a safe way to test a business idea.

Perhaps the biggest reason to become a light entrepreneur is that you avoid the paperwork and bookkeeping of a regular business. As a PalkkaOnline partner, you are not alone. Even a light entrepreneur sometimes needs a friend. We're here to help and support you on your entrepreneurial path.

A simple solution to
employment challenges

Competitive advantage
through light entrepreneurs

Easier billing and

Legal obligations and
insurance covered

Why partner with PalkkaOnline?

PalkkaOnline is a clear, straightforward and easy-to-use billing service. If you have any problems, our customer service is here for you.

There are no hidden costs at PalkkaOnline. We are transparent in everything we do. Our service is backed by over 50 years of experience in business insurance for entrepreneurs. Our commission is 5% of the salary you withdraw. This means that the fee is only charged when you withdraw your salary.

We take the tedious and painful paperwork out of your business, so you can concentrate on doing your job to the full. It's worth the money, because many ordinary entrepreneurs spend expensive hours on paperwork. A light entrepreneur is also not left alone in situations where your customer doesn't pay their invoice on time. If you want, we can also take care of debt collection.

All you have to do is do your job well and send the invoice through PalkkaOnline. We will take care of the taxes and payments for every entrepreneur. Your salary will be paid directly to your bank account. Easy and simple for you!

Fast pay - accelerated payment

If you request a withdrawal before 3pm on a weekday, you will receive the money on the same day. The instant debit is 4% of the amount of your bill.

Advance payment - payment before the due date of the invoice

Payment to the employee before the due date of the invoice. A prepayment of 5% of the amount of your invoice.

Is it easy to become a light entrepreneur?

You perform the work and send an invoice

Tax, insurance and other paperwork for the light entrepreneur is handled entirely by PalkkaOnline billing service

Becoming a light entrepreneur does not require you to set up a company.

Joining and billing

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