Rechtsform: Choosing Your Legal Status
Freelancer (Freiberufler) or trader (Gewerbe) — this choice determines your taxes, registration requirements and contributions.
WHAT TO DO
What is it and when to act?
The first step is determining your legal status — it affects everything: taxes, insurance, registration and contributions. Do this before any other registration.
Freiberufler vs. Gewerbe
Freiberufler (§18 EStG): doctors, lawyers, architects, journalists, translators, many IT specialists, artists. No Gewerbeanmeldung, no Gewerbesteuer.
Gewerbetreibende (§15 EStG): retail, catering, manufacturing, agencies, online shops. Gewerbeanmeldung is compulsory.
I was convinced I was a Freiberufler as a web developer. The Finanzamt asked me to describe my work in more detail. I explained that I do software development and architecture — they confirmed Freiberufler status. How you describe your work is everything.
I opened an online shop and thought that was a liberal profession. It isn't. Retail is always Gewerbe. I had to do the Gewerbeanmeldung first and then submit the tax questionnaire to the Finanzamt.
FREQUENTLY ASKED QUESTIONS
What is the difference between Freiberufler and Gewerbe? ▾
Freiberufler — liberal professions (doctors, lawyers, translators, IT specialists, artists). No Gewerbesteuer, no registration with the Gewerbeamt needed. Gewerbetreibende — commercial activity (retail, manufacturing, agencies, online shops). Mandatory Gewerbeanmeldung; Gewerbesteuer above €24,500 profit; often IHK/HWK membership required.
How does the Finanzamt decide which category I fall into? ▾
In the tax registration questionnaire (Fragebogen) you describe your activity. The Finanzamt checks it and either confirms the Freiberufler status or requires a Gewerbeanmeldung first. Sometimes a follow-up question arrives — always reply in writing.
Can an IT specialist be a Freiberufler? ▾
Yes, if the work is creative or engineering in nature (software development, system administration, IT consulting). The Finanzamt occasionally challenges this — a clear description of the work in the questionnaire is critical. When in doubt, consult a Steuerberater.