toiminimiyrittäjä

Toiminimiyrittäjä, a Finnish term, translates to "sole proprietor" or "sole trader" in English. It refers to a natural person who engages in business activities independently and is personally liable for all business debts and obligations. This business structure is common for individuals operating small businesses or offering services on a freelance basis in Finland.

Establishing a toiminimiyrittäjä requires registration with the Finnish Patent and Registration Office (PRH) and the tax authorities. The business operates under the individual's personal name or a registered trade name. Unlike a limited liability company (Oy), there is no legal distinction between the owner and the business. This means the proprietor's personal assets are not protected from business liabilities.

Profits generated by a toiminimiyrittäjä are taxed as personal income. The proprietor is responsible for managing their own taxes, including advance tax payments, and social security contributions. While this structure offers simplicity in setup and administration, the unlimited personal liability is a significant factor to consider. It is a popular choice for entrepreneurs starting out due to its low administrative overhead and ease of establishment.