What is are liberal professions?
One uniform definition of Liberal professions Does not exist. Tax law or Income Tax Act defines it differently from trade law or Partner Companies Act.
In tax law, Liberal professions than activities carried out independently defined from the areas of Science, art, writing, teaching and education. In addition, the Income Tax Act contains some Catalogue occupations listed: notaries, doctors, lawyers, engineers, architects, tax advice, physiotherapy, obstetrics, journalism, translation and auditing. If activities are similar to these catalogue occupations, they also fall under the liberal professions.
According to trade law, they are independent scientific, artistic, and literary Higher type of activities or personal services of a higher nature, that is, the one require higher education such as a university degree. Since the trade is also self-employment with the aim of making a profit, the Distinction is not always clear. Craftsmen as well as commercial, industrial and catering businesses as well as brokerage activities can be clearly assigned to this.
However, the distinction between trade and liberal professions is important, as there is a trade obligation in Germany. That means Every self-employed person with the intention of making a profit, must a crafts Register and pay business tax. Agricultural enterprises and the liberal professions are excluded from this.
Freelancers are characterized by a high level of personal responsibility and self-management. They are also highly qualified and committed to the common good. This applies, for example, to professions such as doctors or lawyers, which may only be practiced with appropriate training.
Special features of liberal professions
Freelancers are not required to keep double accounts. Instead of a Profit and loss statement (P&L) Put them in a Surplus income statement income versus expenditure.
In invoices Do they still point out the sales tax from 19 percent. Writers who only pay 7 percent sales tax due to copyright law are an exception. Do they hold certain Turnover limits One, can they also use the Small business regulation so that sales tax is waived. In addition, sales must not exceed 50,000 euros in the current year and 22,000 euros in the previous year.
Liberal professions or industries: borderline cases
Self-employment in liberal professions is achieved by Tax office registered, from which you the tax number receives. Whether self-employment is a business is ultimately decided by the tax office, which can also change its decision every year. This also depends on whether you have to pay business tax or not. The decision may also be based on the fact that in the Liberal professions focus on intellectual and creative activity stands.
There are also borderline cases such as in the area Fitness and sport, which are liberal professions from a tax perspective. A business registration is required for dance schools or swimming lessons. As a personal trainer, both are theoretically possible and are handled quite differently from city to city. As a personal trainer, it depends on the focus of your activity: If you primarily give courses to impart knowledge, the teaching activity in the foreground. In the case of a consulting activity It is more of a business. The situation is similar with tattoo studios. Although Tattovians are artists, a business registration is usually still required. Such cases are usually decided on an individual basis.
Requirements for self-employment
There are various liberal professions requirements of varying degrees. For example, doctors and pharmacists need a approbation. Lawyers must have completed a law degree. In addition, they must be a Bar Association or Medical Association who also monitor compliance with certain professional obligations. In the event of violations, for example, the license can also be withdrawn or a professional ban imposed.
Membership in a chamber is mandatory for these professional groups; for others, the option is voluntary. For trainers, there are various licenses, which are necessary, but also volunteers who further qualify you. Physiotherapists and masseuses are liberal professions that require training. For craft businesses as a trade, there is via the vocational training In addition, often a Master's duty.
Which legal form can I choose?
For work in industry or in the liberal professions, you can various legal forms vote. For example, you can join as a couple or as part of a team partnership company merge or establish an AG or GmbH. There are differences in terms of liability. With a ltd or AG Are you to double bookkeeping and committed to the P&L. With the partnership company, you continue to enjoy the benefits of simple bookkeeping, but are liable with your own assets.
