Work B2

Working freelance: taxes, Anmeldung (official residence registration), invoices

Detailed guide for starting as a freelancer in Germany including tax basics.

freiberuf selbststaendig steuer

What is that?

Freelancers work independently in specific catalog jobs or similar activities. In contrast to a classic business, the focus is often on professional services. To get started, you need to set up the organizational, tax and contractual basics properly. The most important practical point: starting a business and registering it for tax purposes should run in parallel. If you accept orders first and only clarify the structure later, you risk questions about invoices, sales tax and deadlines.

Where do I do that?

The first point of contact is the Finanzamt (tax authority) (tax registration), supplemented by ELSTER for digital processes. For legal classification, start-up advice (IHK/HWK/tax advice) can be useful, even if you as a freelancer are not always registered under commercial law. If the classification is uncertain (freelance vs. commercial), the activity should be specified in writing before starting.

Required documents

  • ID card/passport
  • Steuer-ID (tax identification number)
  • Description of the activity
  • Bank details
  • Proof of professional qualifications (depending on the job)
  • Draft for invoice details (mandatory elements)
  • For health insurance: proof of status for classification under contribution law

Typical costs

Tax registration is free of charge. Ongoing costs usually arise from software, possibly tax advice, insurance and reserves for additional tax payments. The amount and structure vary greatly depending on sales, service type and billing model.

Note: Costs may vary by state or city.

Progress

  1. 1 Define the range of services specifically (what, for whom, at what price)
  2. 2 Describe the activity clearly in order to clarify the tax classification
  3. 3 Set up or activate ELSTER access
  4. 4 Submit questionnaire for tax registration as soon as possible
  5. 5 Define invoice standard (consecutive numbers, mandatory information)
  6. 6 Set up a business account/clean accounting structure
  7. 7 Plan tax reserves monthly (liquidity discipline)
  8. 8 Prepare contract templates for offers and orders
  9. 9 Check data protection and legal notice obligations (on website)
  10. 10 Carry out quarterly income/expense checks
  11. 11 Maintain deadline calendar for tax obligations
  12. 12 If you are growing: get tax advice early on

Important German words & sentences

der Freiberufler - selbstständig Tätiger in freien Berufen
Die steuerliche Erfassung - offizieller Start beim Finanzamt
Die Rechnungspflichtangaben - gesetzlich notwendige Rechnungsdaten
Die Rücklage - zurückgelegtes Geld für spätere Zahlungen
Ich möchte freiberuflich starten und meine Tätigkeit korrekt erfassen.
Welche Pflichtangaben müssen auf meine Rechnung?
Wie viel Rücklage sollte ich monatlich für Steuern einplanen?

Common mistakes

  • • Consider income as available liquidity and do not set aside tax portions.
  • • The service description is formulated too unclearly, resulting in questions about classification.
  • • Issue invoices without complete mandatory information.
  • • Only take deadlines seriously when there is a reminder instead of planning preventatively.

Official source