Should you start a company for your side-hustle?

Many people have time and are allowed to pursue their own businesses besides their regular work in Estonia. Why would it be beneficial to do it through a company?

First of all, running a company is easy and makes your freelancer work look more professional. Not to mention you cannot issue and send invoices as a private person.

We also see the term "freelancer" used a lot but that is not really a legal term or form of business. You can offer services as a private person or through a company and both can be viewed as freelancer work.

Finally - if your residence permit in Estonia is tied to employment then it could prove beneficial to run your company on the side. Perhaps at some point you want to quit your job and stay in Estonia. In this case you can be employed by your own company and apply for a residence permit based on that. In a more negative scenario you could also be laid off. In this case it is beneficial to have a company with a solid economic activity.

You still need a new residence permit but usually the Police will allow for you to apply for it and in most cases you would not have to worry about the immigration quota either.

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