Many people wonder whether it is better to set up a business or start as a light entrepreneur. Both options have their advantages, and the choice depends entirely on your personal situation and goals.
Here are the most important differences to support decision-making.
Responsibility and risks
- Light entrepreneur: You operate without your own business ID. Your personal assets are protected, and the price often includes pre-negotiated insurance policies.
- Business name: You establish an official company and obtain a business ID. As a sole trader, you are responsible for all business activities and contracts.
Bureaucracy and paperwork
- Light entrepreneur: You outsource paperwork to a billing service. You don't need an accountant, and you don't fill out tax returns for your business activities.
- Trade name: You are required to keep accounts. You must take care of advance tax payments, VAT returns, and financial statements yourself (or chooseLight Truster Pro Light —we will take care of everything for you).
Start-up grant
- Light entrepreneur: You usually cannot get start-up funding because the activity is often considered a side job or an experiment.
- Business name: You can apply for start-up funding if you become a full-time entrepreneur and meet the conditions for support.
Summary: Light entrepreneurship is the easiest way to start and test a business idea without any commitments. A trade name is a good choice if your operations are extensive, you plan to invest heavily in equipment, or you are eligible for start-up funding.