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Guide · 8 min read
Choose a legal status to sell services
How to think about the legal structure for a small service business, wherever you are. General information, not legal or tax advice.
Start simple, but start legal
Most countries offer a simple status for solo service providers (sole trader, freelancer, micro-enterprise or self-employed regimes) with light accounting and a revenue ceiling. It is usually the easiest way to invoice your first clients legally.
Questions to ask
What revenue ceiling applies? What tax and social contributions are due? Are some activities excluded? Is there a limit on how much you can bill one client? How do you register and how long does it take?
When to move to a company
Consider a limited company when revenue grows, when you take on partners or staff, when clients require it, or when you want to separate personal and business liability.
Where to check
Use your government's official business registration website and tax authority. Our Business Launch System covers structures, founders' agreements and setup in plain language.
