Trabalhar por conta própria pode ser uma decisão empolgante e cheia de desafios. No entanto, um dos primeiros passos cruciais é decidir entre ser um trabalhador independente ou um empresário em nome individual.
Ambas as opções têm as suas particularidades, vantagens e desvantagens, e a escolha certa pode fazer uma grande diferença no sucesso do seu empreendimento.
Main Takeaways
- A self-employed person only provides services, while a sole trader can sell both services and products.
- Individual entrepreneurs can opt for the simplified regime or organized accounting, while self-employed workers issue invoices-receipts.
- Spouse liability may be a factor to consider when choosing to be a sole proprietorship, especially if you are married under joint property arrangements.
- Independent workers have fewer bureaucratic obligations and can focus more on providing services.
- The choice between being a self-employed worker and an individual entrepreneur should be based on the type of activity to be carried out and long-term objectives.
Differences between Self-Employed and Sole Proprietorship
Definition of Independent Worker
An independent worker is someone who provides services to third parties without an employment relationship. You work on your own, offering your work directly to customers. You cannot sell products, only services.
Definition of Individual Entrepreneur
An individual entrepreneur, on the other hand, can both provide services and sell products. This way of working allows you to have greater flexibility in the type of activities you can carry out, covering a wider range of business opportunities.
Main Distinctions
- Type of Activity: The self-employed worker provides services, while the sole proprietor can provide services and sell products.
- Responsabilidade: Both have similar tax and social security responsibilities, but the sole trader may have additional obligations depending on the type of products he sells.
- Flexibility: Individual entrepreneurs have more flexibility to diversify their sources of income.
It is important to understand these differences to choose the modality that best suits your needs and professional goals.
Advantages of Being an Individual Entrepreneur
Flexibility in the Sale of Products and Services
As a sole trader, you have the freedom to sell a wide range of products and services without the restrictions that often apply to other forms of business. You can adapt your offer according to market needs, which allows you to be more competitive and innovative.
Simplified Regime vs Organized Accounting
One of the great advantages is the possibility of opting for the simplified taxation regime, which is less bureaucratic and easier to manage. However, if your turnover grows, you can always transition to organized accounting, which offers you a more detailed view of your business's finances.
Spouse's Responsibility
It is important to note that, when you are a sole proprietorship, responsibility for the business's debts may extend to your spouse, especially if you are married under joint property arrangements. This means that both parties must be aware of the risks and obligations associated with this form of business.
Being a sole trader gives you full control over your business, but it also requires careful management to avoid unnecessary financial risks.
Advantages of Being Self-Employed
Simplicity in Issuing Invoices
Issuing invoices as a self-employed person is a very simple and straightforward process. You can do this through the Finance Portal, without the need for specialized software. The simplicity of this process allows you to focus more on your work and less on bureaucracy.
Fewer Bureaucratic Obligations
As an independent worker, you have fewer bureaucratic obligations compared to other forms of professional activity. You don't need to keep organized accounting, which significantly reduces the time and costs associated with administrative management.
Focus on Service Provision
Working independently allows you to focus on providing services to your clients, without the distractions and additional responsibilities that come with running a business. This freedom can be a great advantage for those who want to dedicate themselves entirely to their craft.
Being an independent worker offers you the freedom to manage your time and choose the projects you want to work on, providing greater professional satisfaction.
How to Open an Activity as an Independent Worker
Steps in the Finance Portal
To start your activity as a self-employed worker, you must access the Finance Portal. Follow these steps:
- Vai a “Serviços”.
- Seleciona “Entregar”.
- Escolhe “Declarações”.
- Clica em “Atividade”.
- Seleciona “Início de Atividade”.
- Indicate the type of activity you will carry out, consulting the activity table in article 151 of the IRS Code.
- Indicates the expected turnover by the end of the first year.
Required Documentation
To open your business, you will need some essential documents:
- Citizen Card or Tax Identification Number (TIN).
- Proof of address.
- IBAN for refund purposes, if applicable.
Useful Tips
- Check VAT eligibility: If your turnover exceeds €13,500, you are automatically included in the normal VAT regime.
- Confirm registration with Social Security: Finance communicates to Social Security the start of activity, but it is always a good idea to check that everything is in order.
- Stay organized: Keep all proof and documents related to your activity to facilitate management and compliance with tax obligations.
Opening a business as an independent worker is a simple process, but it requires attention to detail to avoid future problems.
How to Open a Business as an Individual Entrepreneur
To open a business as a sole trader, you must follow some essential steps. First, it is necessary to register with the Tax and Customs Authority (AT). This process can be done online, through the Finance Portal, or in person, at a Finance service desk. Make sure you have all the necessary documents at hand.
O nome comercial deve incluir o teu nome civil completo ou abreviado, podendo adicionar uma expressão relacionada com a atividade que vais exercer. Por exemplo, se te chamas João Silva e vais abrir uma loja de informática, o nome pode ser “João Silva Informática”. Se herdaste a empresa, podes acrescentar “sucessor de” ou “herdeiro de” ao nome.
After choosing your business name, you must register with the Tax Authority. This step is crucial so that you can start your activity legally and comply with all tax obligations. On the Finance Portal, you will find a specific section for registering new sole traders. Fill in all the mandatory fields and submit your registration.
Starting a business as a sole trader may seem complicated, but with the right steps, you will be ready to start your business in no time.
Tax and Social Security Obligations
Income statements
As a self-employed worker or sole proprietor, you must submit your quarterly income statement to Social Security by the last day of January, April, July and October. Based on this declaration, Social Security calculates the value of the monthly contribution payable, with the contribution rate being 21.4%.
Social Security Contributions
Registration with Social Security is done automatically when the Tax Authority communicates the start of activity. Social Security ensures the worker's registration and their inclusion in the Independent Workers' Regime. Payments must be made between the 10th and 20th of each month.
Differences in Tax Regimes
If you exceed 12,500 euros per year in revenue or if you make sales to legal entities, you must make withholding taxes. Furthermore, you must pay VAT if you exceed 12,500 euros in income in the previous year, according to the VAT Code. It is also necessary to join the Caixa Postal Eletrónica, if you are covered by the normal VAT regime, and have work accident insurance.
Remember that complying with these tax and contribution obligations is essential to avoid legal problems and ensure the sustainability of your business.
Disadvantages of Being a Sole Proprietorship
Unlimited Liability
One of the biggest disadvantages of being a sole trader is the unlimited liability. This means that there is no separation between personal assets and business assets. If you have debts, all your personal assets, such as houses, vehicles or land, can be used to cover these debts.
Complexity in Management
Running a business as a sole trader can be quite complex. You have to deal with all areas of the business, from accounting to marketing. Furthermore, the simplified regime, frequently used, assumes a fixed taxation on 75% of declared income, regardless of the actual expenses.
Additional Costs
There are also additional costs to consider. For example, the need to take out professional insurance. These costs can add up quickly and affect your profitability.
Disadvantages of Being Self-Employed
Limitation on the Sale of Products
As an independent worker, you may encounter some limitations when selling products. Your activity is generally more focused on providing services, which can restrict your business opportunities. Selling products may require a more complex structure, something that is not always viable for those who work on their own.
Lower Brand Recognition
Working independently can make it difficult to create a recognized brand in the market. Without a formal business entity, it can be more difficult to gain customer trust and establish a solid presence. The lack of a strong brand it can affect your ability to attract new customers and grow your business.
Professional Insulation
Professional isolation is a significant disadvantage for many independent workers. Working alone can lead to feelings of loneliness and lack of motivation. Additionally, the absence of colleagues can limit opportunities for networking and professional development.
Being self-employed offers a lot of freedom, but it also brings challenges that should not be underestimated. Evaluate the disadvantages carefully before making the final decision.
Practical Cases and Real Examples
Sucess histories
Let's start with some success stories that can inspire you. For example, João, who started out as a freelancer in graphic design, managed to build a solid client base and eventually opened his own company. Today, he employs a team of five and continues to grow.
Common Mistakes to Avoid
Not everything is rosy, and it's important to learn from other people's mistakes. A common mistake is not separating personal and business finances. This can lead to enormous confusion and problems with the Tax Authority. Another mistake is not investing in marketing, which can limit the growth of your business.
Tips from Professionals
Here are some tips from professionals who have already had these experiences:
- Planning is essential: Before you start, make a detailed business plan.
- Consult an accountant: It may seem like an extra cost, but it will save you a lot of headaches in the future.
- Invest in training: Never stop learning. The market is always changing, and it's important to stay up to date.
Remember, success doesn't happen overnight. It takes hard work, dedication and, above all, passion for what you do.
Tips for Choosing Between Self-Employed and Sole Proprietorship
In order for the decision to work for yourself to be as fruitful as possible, one of the important steps is to choose, for your particular case, between opening a business as an independent worker or as a sole proprietor. If you are only going to provide services, it may make more sense to opt for the independent worker. If you want to sell products, it makes more sense to become an individual entrepreneur.
Before making a decision, it is crucial to carry out a detailed analysis of the costs and benefits associated with each option. It considers aspects such as the tax burden, bureaucratic obligations and potential gains. Careful analysis can avoid unpleasant surprises in the future.
Consulting an accountant can be an excellent idea to clarify doubts and obtain a clearer view of the tax and legal implications of each option. A professional can help you make a more informed decision that suits your profile and goals.
Tip: Don't underestimate the importance of good professional guidance. A consultation can make all the difference in your choice.
Impact of Choice in the Long Term
Business Growth
The choice between being self-employed or a sole trader can significantly influence the growth of your business. Individual entrepreneurs it is easier to expand their operations, hire employees and diversify the range of products and services. On the other hand, as an independent worker, you may encounter more challenges in expanding due to limited resources and the need to manage everything yourself.
Financial Sustainability
Financial sustainability is another crucial factor to consider. Individual entrepreneurs can benefit from a more robust financial structure, with access to lines of credit and specific tax incentives. Self-employed workers may have more simplified financial management, but with fewer financing opportunities and greater vulnerability to income fluctuations.
Adaptation to Market Changes
The ability to adapt to market changes is essential for the longevity of any business. As a sole trader, you have the advantage of being able to quickly adjust your business strategy, explore new markets and innovate. However, as an independent worker, your flexibility may be greater in terms of changing clients and projects, but the scale of adaptation will always be more limited.
The decision between being self-employed or a sole trader should not be taken lightly. Carefully evaluate the pros and cons of each option and consider how each choice may impact your long-term future.
Frequently Asked Questions
An Independent Worker is a person who works on their own, providing services to third parties without an employment relationship.
Sim, um empresário em nome individual (ENI) em Portugal pode ter empregados. É permitido contratar funcionários para ajudar nas atividades do negócio, mas o processo é diferente do de uma empresa convencional.
Para contratar empregados como ENI, é necessário seguir alguns passos e cumprir todas as obrigações legais e fiscais, incluindo registar os empregados na segurança social, garantir os direitos dos trabalhadores conforme o código do trabalho, e claro, a melhor parte, pagar as contribuições à Segurança Social.ça Social: 34,75% no total, sendo 23,75% da responsabilidade do empregador e 11% do trabalhador.
É importante que enquanto ENI compreenda todas as responsabilidades legais envolvidas e garanta que o negócio esteja em conformidade com a legislação laboral, nada melhor que ter um ótimo contabilista a ajudá-lo neste processo.
A Sole Trader is a self-employed worker who, in addition to providing services, can also sell products and goods.
The main difference is that the Independent Worker only provides services, while the Individual Entrepreneur can provide services and sell products.
Among the advantages are flexibility in the sale of products and services, the possibility of opting for the simplified regime or organized accounting, and shared responsibility with the spouse in certain cases.
The advantages include simplicity in issuing invoices, fewer bureaucratic obligations, and a greater focus on service provision.
To open an activity as an Independent Worker, you must follow the steps on the Finance Portal, present the necessary documentation and follow some useful tips.
To open an activity as an Individual Entrepreneur, it is necessary to follow initial procedures, choose a business name and register with the Tax Authority.
Both must declare income, contribute to Social Security, and there are differences in tax regimes that must be understood.