1. False self-employment, when a freelancer acts as an employee, may be considered fraud. The consequences can be serious for the freelancer and the employer. If 83 per cent or more of a freelancer's income is from a single client or if they have a long-term contract with one employer, alarm bells will ring with the authorities.
2. Freelancing on the side offers flexibility, extra income and reduced risk, but there are restrictions. Generally, you may work up to 18 hours a week in a side job, and it's necessary to inform your health insurance company, as it can affect social-security obligations.
3. All invoices written and received must be kept for ten years, in case the tax office has any questions.
4. Paperless registration of a new business is possible via the Mein ELSTER platform, meaning a tax office visit is generally no longer necessary.
5. The Institut für Freie Berufe, in Nuremberg, offers a free advisory call to those considering self-employment for the first time.