Can a small entrepreneur have an online store?

A light entrepreneur can definitely start and run an online store. Light entrepreneurship is a form of entrepreneurial activity in which a person operates as an entrepreneur without their own business ID, using an invoicing service to handle administrative matters. This model is excellent for online stores, especially in the early stages.

Light entrepreneurship has grown in popularity in Finland in recent years because it offers a low-threshold path to entrepreneurship. Starting an online store as a light entrepreneur is an attractive option for many who want to try out their business idea without the obligations associated with starting a traditional company.

In practice, a light entrepreneur can sell both products and services in an online store. The operation is flexible, as the invoicing service takes care of taxes, insurance and other statutory payments. This frees the entrepreneur to focus on the essentials, which is business development and customer service.

How do you set up an online store as a small entrepreneur?

Starting an online store as a small business owner starts with choosing the right e-commerce platform and billing service. Shopify is an excellent platform option for a small business owner, as it offers an easy-to-use interface without strong technical skills.

This is how you set up an online store as a small entrepreneur:

1. Register with your chosen invoicing service (such as Ukko.fi, Eezy or Holvi)
2. Choose an ecommerce platform (Shopify is a popular option due to its ease of use)
3. Get a domain name (web address) for your online store
4. Create an online store layout and product pages
5. Integrate payment services with your online store
6. Design logistics solutions to deliver products

As a small business owner, you should note that online store sales are invoiced through an invoicing service. In practice, this means that online store payments are directed to the invoicing service's account, from which they are paid to you as salary after taxes and other fees are deducted.

For less technically savvy entrepreneurs, Shopify offers ready-made e-commerce templates and a user-friendly dashboard. The platform is quick to deploy and allows your e-commerce store to scale as your business grows – for example, expanding into international markets is easy.

What tax issues should a small entrepreneur consider when setting up an online store?

It is important for a small business owner to understand the tax aspects of online shopping. Value added tax is the most significant issue to consider when operating an online store. If sales exceed 15,000 euros in a 12-month period, a VAT liability arises.

Key tax considerations:

• The invoicing service withholds tax from your income, which is determined by your tax card.
• Sales below €15,000 per year: you do not need VAT registration
• Sales over €15,000 per year: VAT registration is mandatory
• You can deduct online shopping expenses as income-generating expenses in your taxes.
• Keep a close eye on your sales to know when VAT liability comes into effect

It's also important to know that the costs of running an online store, such as monthly Shopify platform fees, domain fees, and marketing expenses, are deductible as income-generating expenses. An invoicing service will usually help you with these expenses, but you'll need to keep track of your receipts and submit them to the invoicing service.

If your operations grow significantly, you may want to consider setting up a full-fledged company. This will allow you to better optimize your taxes and manage your growing business more efficiently.

Summary: Keys to success in e-commerce for small business owners

Starting an online store as a small entrepreneur is a great way to start an entrepreneurial business with little risk. However, a successful online store requires good planning, a clear vision of the target audience and products, and a functioning online store platform.

The most important factors for the success of a light entrepreneur's online store are:

• An easy-to-use and reliable e-commerce platform like Shopify
• Clear product range and target group definition
• Smooth payment and delivery methods
• Understanding and managing tax matters
• Marketing planning and implementation

The flexibility of light entrepreneurship allows you to test and develop your online store in stages. As your operations grow, you can smoothly transition from light entrepreneurship to full-fledged entrepreneurship, if necessary.

Online shopping offers excellent opportunities for scalable business. With the Shopify platform, you can start small and expand your operations gradually, even to international markets. If implemented correctly, a light entrepreneur's online store can grow into a significant business, providing both financial freedom and the opportunity to pursue your own passion.