Light entrepreneurship or a sole trader (toiminimi)? Where to start?

What does light entrepreneurship mean?

A light entrepreneur invoices their work through an invoicing service without their own business or Business ID. The service handles the invoicing, the tax withholding and the authority reports, and charges a service fee for it (often a few per cent of the invoice). Light entrepreneurship is not a business form but a way to invoice.

What does a sole trader (toiminimi) mean?

A toiminimi is your own business with a Business ID. You get full deductions, you handle (or outsource) the bookkeeping and VAT yourself, and you have more control and often a more tax-efficient position. There is a little more responsibility.

The key differences

• Setup: a light entrepreneur founds nothing; a toiminimi is registered (foundation notification €75).
• Costs: a light entrepreneur pays a fee on every invoice; a toiminimi has more fixed costs (e.g. bookkeeping).
• Deductions: broader for a toiminimi; more limited for a light entrepreneur.
• VAT: a toiminimi handles it itself (over €20,000 turnover); an invoicing service can handle VAT for you.
• YEL: applies to both if work income exceeds €9,423.09 (2026).

The YEL obligation doesn’t disappear as a light entrepreneur — if your estimated work income exceeds the limit, YEL is mandatory for a light entrepreneur too.

Which one should you start with?

Light entrepreneurship suits occasional or trial invoicing when you want to start lightly. When the activity is regular or growing, your own toiminimi is often cheaper and more flexible, because you get full deductions and better taxation.

We help you choose

We help you choose the right approach and set up a toiminimi if that makes the most sense — in your language.