So, I'm quitting my job before the end of the year - and I will be starting my own one-man company.
I have absolutely no experience with that - so I was wondering if there's any insight some of you can share?
I realise that laws are different across borders - but I suppose the basic stuff is relatively similar in the Western world.
For instance, I know I can deduct a variety of expenses under these circumstances, but I have no knowledge of details.
For one, is there some way to deduct (any kind of) living expenses when you're running a company from home?
I don't have my own company but many friends who do.
First of all, your point about different countries is a major one, so take everything I say with a pinch salt and the need to do additional research within your tax jurisdictions.
First of all, any purchase for a company may be VAT-deductible, this can include everything from a car and computer (big-ticket items) to meals and parking fees (small ticket items). These can add up, but must be for the business and as such if the tax person comes along, you would need to keep all receipts and be able to prove it as such. In my understanding, this is where small companies can save a lot of money in the early days.
You will need to also create your own company, in the UK, most people create their Limited company, not sure how that would work in the Nordics, but I assume it's similar. This is usually quite cheap, but maybe not worth doing until you are making some money too (depending on how much you may or may not rely on unemployment benefits temporarily?).
In terms of the business element, there are very different local laws. In the UK, if you use a certain portion of your home for business, then it becomes a business in its own right, so you may need to be careful as some areas don't allow for that sometimes (although most do allow it, but taxes may be different then too). If you're renting, you may not be allowed to use the space for business-purposes for example, so you may need to check your rental agreement.
In the UK, you cannot claim all standard living expenses (rent) as an expense for work as far as I am aware, but you can claim percentages thereof sometimes.
There are some things you need to do as well such as: setting up business bank account, insurance cover, that are basic, but need to happen and are different in each country. Also be aware that as a business you will need to adhere to regulations such as GDPR.
You will also want to draw up a business/project plan to understand your costs, capital, timelines.
The only other advice I do have is to go through some forums or websites that help with this type of things in your country.
On the business itself, what I believe is important is to identify your skills and your gap of skills so you know what you would need to hire for (e.g. art).
Sorry for the braindump. Hope it helps a bit.
