Entrepreneur account
The simplest way to get started in business
- No accounting obligation
- Calculation of taxes and payment to the Tax and Customs Board is automatic
- Conclusion of the agreement and the account are both free of charge
What is an entrepreneur account?
An entrepreneur account is meant to be a way for a private person to operate as an entrepreneur in a bureaucracy free and affordable manner, without worrying about financial statements, monthly tax declarations and the payment of taxes – all of this takes place automatically under entrepreneur account entries.
An entrepreneur account is the best choice when one private person pays another private person for services or goods that they have provided, but, the entrepreneur account holder may sell services and goods to both private individuals and for businesses.
For income received in the entrepreneur account the tax liability incurred is fulfilled.
The business income tax rate is 20% from the amount received in the entrepreneur account if the amount does not exceed EUR 25 000 per calendar year and 40% to the entrepreneur account if income received exceeds EUR 25 000 per calendar year.
An individual that has opened an entrepreneur account is under no obligation to register as an entrepreneur or to keep a statement of revenue and expenditure.
When using an entrepreneur account you may not be a person liable to value added tax or operating as a self-employed person (FIE) in the same or similar area of activity.
How do you open an entrepreneur account?
Open an account
If you are not a client of LHV, open a private account.
Conclude an agreement
Enter the LHV internet bank and conclude an entrepreneur account Agreement.
