Pros and cons of becoming self-employed

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It makes sense for an individual entrepreneur to switch to self-employed status if he works without a team, and his clients are mainly individuals. In this case, self-employment turns out to be more financially advantageous, since when working as an individual entrepreneur on the simplified tax system, the entrepreneur pays 6% of the profit, and when switching to self-employment, he will pay 4%. It is always nice to reduce the tax burden for yourself.

It is important that when an entrepreneur lithuania telegram database works in the B2B sector using the simplified tax system, the tax burden does not change when switching to self-employment and remains at the level of 6%.

When switching to self-employment, an entrepreneur frees himself from the following actions:

tax reporting,
maintaining accounting records,
using an online cash register or cash register,
the need to open a current account.
Four pluses in total.

The downside is that an individual entrepreneur who has become self-employed does not receive work experience or pension points - however, no one prevents any self-employed person from making contributions to the Pension Fund at their own discretion.