Opening a self-employed account may seem on paper like a simple action: a few forms, a few signatures, and the business is up and running. In reality, many self-employed individuals discover in hindsight that the very beginning—done alone, quickly, or to save money—is what creates costly mistakes down the line.
Errors in classification, reporting, coordination with authorities, or misunderstanding of tax obligations can follow the business for years to come.
Our goal is not to frighten, but to illuminate. To understand what the most common mistakes are when opening a self-employed account independently, and especially how to avoid them from the start, in a smart, legal, and more peaceful way.
Incorrect choice of business type at the initial stage
One of the most common mistakes is opening a type of business that doesn't actually suit the nature of the activity.
An exempt business opened despite high expected income, an authorized business opened when there's no need for it, or even choosing a micro-business without understanding the limitations; all of these are decisions that are sometimes made automatically, without a broader perspective.
The problem is that the type of business affects tax liability, dealings with customers, VAT collection, and the ability to grow later. Changing business status is possible, but it's not always simple, and sometimes involves reporting, adjustments, and unnecessary bureaucracy. Professional guidance at the selection stage can prevent all of this.
Incorrect or incomplete filling of registration forms
Many open an account independently thinking it's merely a technical form, when in reality, every field in the registration forms submitted to the Tax Authority, VAT, and National Insurance is examined thoroughly; type of activity, method of income, revenue estimate, activity start date, and more.
A small mistake, lack of precision, or omission of information can lead to incorrect advance payment determinations, retroactive account opening, or even an audit. When doing this alone, without experience and without a body that understands the implications, the risk increases; even if the intention was good.
Lack of understanding of ongoing reporting obligations
Opening an account is just the beginning. After registration comes the real part: periodic reports, advance payments, declarations, and sometimes correspondence with authorities. Many self-employed individuals are surprised to discover that lack of knowledge at this stage costs no less than a mistake in the opening itself.
When you don't understand what to report, when, and how, it's easy to miss deadlines, pay more tax than required, or accumulate unnecessary debts. Proper guidance from the start creates order, understanding, and peace of mind, and prevents crisis management.
Opening an account without thinking ahead about growth
Businesses don't remain static. Someone who opens a small account today may grow tomorrow. One mistake is to open an account just to get started, without thinking about the next step: increased income, change of activity, transition to a limited company, or hiring employees.
When the opening is done without forward thinking, every change becomes a complex move. In contrast, an opening conducted correctly, with a professional foundation, allows smooth transitions between stages; without mess and without surprises.
Trying to save money in the wrong place
The desire to save at the beginning of the journey is understandable.
But opening a self-employed account is precisely the point where unplanned savings can end up being very expensive. Tax errors, incorrect reporting, or improper dealings with authorities ultimately cost much more than basic professional guidance.
Instead of struggling alone with a complex system, you can choose a solution that enables quick, legal, and accurate opening; without sacrificing professional oversight from an accountant and lawyer.
How to avoid all of this—in a simple and smart way
The safe way to avoid mistakes is not to do everything alone. Opening an account with the guidance of an accountant ensures that the choice of business type is correct, that the forms are filled out accurately, and that dealings with authorities are conducted legally, from day one.
At CPA Digital you can open a self-employed account, exempt business, authorized business, or a limited company, online, quickly, and simply. Fill out a short online form, receive documents within 48 hours, full professional oversight, and personal support even after registration. No running around, no guessing, and with peace of mind that allows you to focus on what really matters: building your business right from the start.