1. Starting a business as an influencer – how does it work?
If you want to start your career as an influencer or content creator, the legal form under which you appear on the market with your business partners is relevant to you. Basically you have 3 options. You can read here which legal form is right for you and whether you are pursuing a freelance or commercial activity.
2. Freelance work or tradesman?
Influencers often ask whether you are a freelancer or a business owner. In principle, influencers act as traders if they do not carry out any scientific or artistic activity. Through advertising activity, an influencer carries out an independent, repetitive activity in general economic traffic and does so with the intention of making a profit. This should probably clarify a very important question in advance. So it is usually a commercial activity as soon as you advertise on your own social media channels for companies.
3. Choice of legal form
Basically, it is important to consider which criteria should be met for you. Each legal form comes with different advantages and disadvantages. The distinguishing criteria are:
- Limitation of Liability
- Accounting requirement
- image
- Business registration
- Minimum capital
- Steer
4. Comparison of legal forms for influencers:
| one-man business | UG (limited liability) entrepreneurial company | GmbH Limited liability company | |
| Limitation of Liability | Liability with private assets | No liability with private assets | No liability with private assets |
| Accounting requirement | Excess income calculation is sufficient | Accounting required | Accounting required |
| image | accepted | means recognized | Fully recognized |
| Business registration | necessary | necessary | necessary |
| Minimum capital | No minimum capital required | The minimum capital is €1 (but in reality it should be at least €2,000) | The minimum capital is €25,000, but it can also be founded with as little as €12,500 |
| Steer | Income tax from €9,408 (as of 2020 - basic tax allowance) (personal income tax rate) solidarity surcharge on income tax (5.5%) trade tax from €24,500 (depends on the municipality in which you live - Ø 14%) | Corporation tax (15%) Solidarity surcharge on corporation tax (5.5%) Trade tax (depends on the municipality in which you live – Ø 14%) | Corporation tax (15%) Solidarity surcharge on corporation tax (5.5%) Trade tax (depends on the municipality in which you live – Ø 14%) |
Many micro-influencers choose the form of a sole proprietorship because there is no trade tax to be paid up to a profit of €24,500, you are not obliged to keep double-entry books and you do not have to make a minimum deposit to start up. However, there is no limitation of liability here. If you are not familiar with the subject of taxes and the calculation of excess income, you should seek the expertise of a tax advisor.
If enough is earned, some influencers use the option of limiting liability by founding a GmbH or UG. You then work with a tax advisor who takes care of the ongoing bookkeeping, the preparation of the annual financial statements and the tax returns. This means you can worry about your operational business and continue to inspire the community with your own content.
This article does not replace legal advice nor does it constitute legal advice; it is intended for guidance only.
