hTTi

I'm not in IT, so I can't speak to every issue you've raised, but I am a longterm freelancer. As far as multiple clients are concerned, I always thought you just needed to have multiple clients, period, and the best way to prove this would be with invoices to different clients within a tax year. So for example, you could freelance essentially full-time on a project, then move on to the next one with a different client. What you can't just do is get a single client from whom you earn enough, and call it a day. As for the social insurances, are you sure you can't just pay out the set percentage yourself? It's still high, since you're basically paying out your half and the half that would normally be paid out by an employer or an organization like the KSK, but it's not 60-70%.

I'm not familiar at all with the ANÜ structure you mentioned, but it does sound like the worst of both worlds: you're not doing real freelancing, but you're also not getting the benefits of being a normal employee. Why would anyone go that route, just curious?

Just curious, if potential freelancer is expecting yearly income above say 70k per year (rough figure, approximately low gross income for a full time employee) what are the drawbacks in registering a UG/GmbH? Besides the costs of accountant and tax adviser for annual statements

DuBa wrote: ↑Tue Mar 17, 2026 1:45 pm Just curious, if potential freelancer is expecting yearly income above say 70k per year (rough figure, approximately low gross income for a full time employee) what are the drawbacks in registering a UG/GmbH? Besides the costs of accountant and tax adviser for annual statements

The drawback is the fact that a one-man-GmbH still runs into the same trouble as a freelancer when there is basically just one client:

(see https://www.springerprofessional.de/rec ... t/27333966)

Translated by Deepl:
The ruling of the Federal Social Court (BSG) of 20 July 2023 provides clarity on the issue of fictitious self-employment in relation to a one-person limited liability company. Such a company does not, in itself, protect against a finding of fictitious self-employment.

According to the ruling handed down by the Kassel court in the summer of 2023, working under the client’s instructions and being integrated into the client’s work organisation are key characteristics of dependent employment under Section 7 of the Social Code Book IV. Even if a one-person limited liability company acts as the contractor, dependent employment may still exist if the actual working conditions suggest this to be the case.

In this regard, the Federal Social Court has clarified that simply setting up a one-person limited liability company does not automatically protect against being classified as a pseudo-self-employed person. The legal relationship between legal entities, such as a limited liability company, is not decisive for determining employment status. What matters are the practical working conditions and the worker’s integration into the client’s business operations.

What is decisive is the overall nature of the work, based on the actual circumstances and not merely on the contractual agreements. Even if the service contract is concluded with the limited liability company (GmbH), the work performed by the managing director may be classified as employment if, in practice, he works in the same way as an employee of the client.

The case law of the Federal Social Court must also be followed from an income tax perspective, meaning that income tax obligations are in addition to the employer’s obligations under social security law.

Thanks Franklan, this is clear (and should be well known to anyone thinking about self employment in any shape or form) If i remember correctly this case was referenced multiple times on the old TT forum, it is good to carry over the knowledge.

I was referring more to the discussion above, i.e. why would ANÜ deductions make more sense than setting up a UG with minimal sustainable salary? Of course, if we are talking about freelance work for a few weeks or months per year there is no comparison.