Guide

#What a Business ID is

A Business ID (Y-tunnus) is an identifier that distinguishes a company to authorities and customers. It's issued by the Finnish Patent and Registration Office and the Finnish Tax Administration (Vero), and you get one by filing a start-up notification with the YTJ service. The Business ID appears, for example, on a company's invoices and contracts, and anyone can use it to check a company's registrations on ytj.fi.

A Business ID is not itself a licence to run a business — it's an identifier. But many entrepreneurial obligations are built around it: bookkeeping, tax filings and registrations. That's why it's worth considering whether you actually need your own Business ID, or whether a lighter way of invoicing is enough.

In practice you'll run into the Business ID everywhere companies deal with one another: invoices, contracts, requests for quotes and e-invoicing address registries. It lets a customer check on ytj.fi whether a company is entered in the Trade Register, the advance collection register and the register of VAT-liable operators. A light entrepreneur doesn't need to know these registers by heart, but it helps to understand what a customer means when they ask for a Business ID for an invoice. As a light entrepreneur, you give the customer Truster's invoicing details, which are ready-made in the app.

#When you don't need your own Business ID

As a light entrepreneur you invoice your work through Truster without a company of your own and without your own Business ID. Invoices go to your customer under Truster's Business ID, and you receive pay for your work, with taxes already handled according to your tax card. This is enough for most gig work: design, cleaning, consulting, typical construction jobs, creative fields and many others work fine without a company of your own.

Without your own Business ID you also avoid an entrepreneur's administrative duties: you don't need to keep books, file company tax returns, or track registrations. Light entrepreneurship costs 3.99% of invoicing or €55/month, and opening an account is free.

The same applies to many other everyday gigs: photography, video production, graphic design, programming, home cleaning, yard work, moving help, translation and event assistance all work as a light entrepreneur. If your work doesn't require an official licence and your customer doesn't require a company of your own, you can start invoicing the same day. This is the biggest advantage of light entrepreneurship: the barrier to trying out a business idea is low, because there's nothing to set up or wind down.

Many light entrepreneurs also wonder about credibility with a Business ID: does an invoice without your own company look unprofessional? In practice, it doesn't. Your customer receives a proper invoice with all the details required by law, and paying it is exactly as easy for them as paying any company's invoice. Professionalism comes from the quality of the work, a clear offer and precise invoicing — not from whose Business ID appears in the corner of the invoice.

#When you need your own Business ID

The most important line is licensed and notifiable work: this kind of work cannot be done as a light entrepreneur without a Business ID, but it can be done with your own Business ID. Licensed or notifiable fields include, for example, electrical installations, freight transport and many social and healthcare services. If your field requires a licence or a notification to an authority, you need your own Business ID to which the licence is granted.

Your own Business ID is also needed when your activity requires its own VAT registration, or when your customers demand it. Some large companies only accept suppliers operating under their own Business ID, for example due to their procurement practices. If you're aiming for such clients, your own Business ID opens doors.

Licence requirements vary by field and are set out in each field's own legislation. Good sources of information include the Suomi.fi service's page on entrepreneurs' licences and obligations, as well as your field's supervisory authority. If you're planning, for example, electrical work, professional transport, or social and healthcare services, sort out licence matters before promising anything to a customer, since licensed work carried out without a licence can turn out costly. So remember the rule: as a light entrepreneur without a Business ID, this kind of work can't be done — but with your own Business ID and licence, it can.

Also note that the need for a Business ID can arise along the way: gigs may start out fine as a light entrepreneur, but as you grow, your customer base or range of services may change. In such a situation, it's worth planning the move to your own Business ID in advance, so invoicing doesn't hit a snag. Truster's customer service can help you assess when the switch is timely.

#How to get a Business ID with Truster's sole proprietorship service

If you need your own Business ID, you don't need to become a paperwork expert. With Truster's sole proprietorship service, we help you set up a sole proprietorship (toiminimi) and handle the necessary registrations, so you get your own Business ID and can apply for any licences your field may require for it.

With the sole proprietorship service, everyday life continues much like it did with light entrepreneurship: you do the work and send invoices in the app, and Truster handles the paperwork for you. The service costs 3.99% of invoicing or €59/month. You get the benefits of your own Business ID without the administration landing on your shoulders.

Moving to the sole proprietorship service doesn't mean you're left alone with new obligations, either. Truster takes care of the day-to-day paperwork for you, and you focus on your work and your customers as before. If you're already a Truster light entrepreneur, the transition is especially smooth, since the app and the way things work are already familiar and you don't need to learn new tools.

Before setting up a sole proprietorship, it's worth listing any licences and notifications your field may require and making sure your business can also carry the new obligations. Truster's customer service will go through these matters with you, so the transition goes smoothly without any break in invoicing or customer relationships.

#Light entrepreneurship or your own Business ID: how to choose

The rule of thumb is simple: start as a light entrepreneur if your field doesn't require a licence and your customers don't require a company of your own. Move to your own Business ID once you do licensed work, need VAT registration, or are pursuing customers who require it. The choice isn't final, since you can switch models as your business develops.

If you're not sure which side of the line your own work falls on, check your field's licence requirements on official authority websites or ask Truster's customer service. We'll help you choose the model that fits your situation.

Finally, run through a short checklist: does your work require an official licence or notification, do the customers you're targeting require their own Business ID, and does your activity need its own VAT registration? If you answered no to all of these, light entrepreneurship is probably the easiest way to start. If even one answer is yes, check out Truster's sole proprietorship service, so you get the benefits of your own Business ID without the administrative burden.