Starting your own business – a small business – is straightforward. The name says it all: it’s a business on a small scale. As a model or influencer, you can run a small business either as your main job or as a side hustle. You don’t need your own business premises, and filing your annual tax return is quick and easy. Unlike a business owner, you simply calculate your profit using a net income statement.

Why a small business is ideal for models and influencers

You don’t need any start-up capital to get started. Unlike with a limited liability company (GmbH), you may only use your real name (first and last name), meaning you cannot use stage names or pseudonyms. The requirement is that your revenue in the first fiscal year (expected) does not exceed 17,500 euros.

The advantages of a small business at a glance:

Easy to get started: Minimal bureaucratic hurdles and low-cost setup.
Simple bookkeeping: Cash basis accounting instead of complex annual financial statements.
Flexibility: Can be done as a full-time or part-time job.
No business premises required: You can work from anywhere.

How to register a small business

If you decide to work as a model or influencer, a visit to the Trade Licensing Office is unavoidable.

Steps for Starting a Small Business

Registration with the Trade Licensing Office: Bring your ID card and approximately 30 euros in fees.
Registration with the Tax Office: After registering your business, you will receive a questionnaire from the Tax Office where you can apply for the small business exemption under Section 19 of the German Value-Added Tax Act (UStG).
Invoicing: As a small business owner, you do not include sales tax on your invoices. A note such as “No sales tax is charged pursuant to Section 19(1) of the German Value Added Tax Act (UStG)” is mandatory.

Bookkeeping and Annual Financial Statements

Once the business is established, the real work begins.

Invoicing: Make sure not to include sales tax if you are using the small business regulation.
Annual Financial Statements: Prepare a cash basis income statement (EÜR) and file your VAT return.
Tip: If your profit is less than 5,200 euros, you are a non-contributing member of the Chamber of Industry and Commerce (IHK) and can take advantage of their advisory services.

Important: As a small business owner, you are liable with your personal assets. Therefore, you should avoid major purchases and always keep a close eye on your finances.

How long does it make sense to operate as a small business?

A small business offers you an easy entry into self-employment. As your success grows and your expenses increase, switching to a different legal structure might make sense. As soon as your purchases and revenue rise – for example, due to business travel or technical equipment – you should consider new options.