A personal project, full control, no bosses – the idea of ​​self-employment sounds like freedom to many students. But this freedom doesn't come without rules, because if you want to start a business during your studies , you, like any other entrepreneur, have to deal with numerous regulations and frameworks. Which income is taxable? Which legal structure makes sense? Does your student health insurance remain valid? And what information must be disclosed to the tax office? We've compiled an overview with the most important information for you.

Differences between freelance and commercial activity

Before even considering taxes and insurance, a fundamental question arises: Is your planned activity a commercial or freelance activity? Both your tax obligations and the amount of paperwork involved depend on this.

Freelance professions include, for example, journalistic, artistic, or scientific work, as well as IT services or tutoring. As a freelancer, you don't need to register a business; you simply need to submit the tax registration questionnaire to the tax office.

A business operation exists in the case of online shops, agencies, or product sales and requires registration with the relevant trade office. The fee for this varies depending on the state and municipality, but is generally between €20 and €65. In addition, trade tax is levied once the tax-free allowance is exceeded.

Choose the appropriate legal form

You should make this decision with liability, effort, and long-term viability in mind. Students, in particular, often start a sole proprietorship because this legal structure carries little risk, is uncomplicated, and requires no start-up capital.

Another option would be the UG (haftungsbeschränkt) – a kind of mini-GmbH where liability is limited to the company's assets. However, this requires:

• Registration in the commercial register
• Notarization of the articles of association
• Minimum share capital of one euro (however, a more realistic capital of at least €500 is recommended)

Tax principles and small business regulations

Regardless of the legal structure, tax registration follows promptly after incorporation. The tax registration questionnaire can be completed online via ELSTER and forms the basis for this process. In it, you must specify, among other things, your expected revenue and the business purpose. This determines the following types of taxes:

• Income tax: on the profit earned
• Value Added Tax (VAT): 19% or 7% on services – unless you use the small business exemption.
• Trade tax: for commercial activities with a profit of €24,500 or more.

The small business regulation ( § 19 UStG ) also exempts founders from VAT if their annual turnover was up to €22,000 in the previous year and up to €50,000 in the current year. This eliminates the obligation to submit monthly VAT returns and to show VAT on invoices.

Obligations regarding invoices, receipts and tax returns

Even if you're only self-employed part-time, unfortunately, you can't avoid paperwork entirely. Certain obligations apply from the very first euro you earn.

For most people, a simple income statement (EÜR) is perfectly sufficient. You can conveniently submit the necessary forms digitally via ELSTER.

Things you should pay attention to:

• Invoices must include the following information: name, address, tax number, VAT ID (if applicable), and service period.
• You should collect documents such as receipts, invoices or contracts properly and keep them for 10 years.
• Tax returns are filed digitally using ELSTER or an accounting tool.

Tip: Use a simple accounting program specifically designed for small businesses or freelancers. This way, you always have an overview of your income and expenses and can avoid Excel chaos or lost receipts.

Regulations regarding health insurance

Health insurance is a particularly important point for student entrepreneurs, because whether you remain covered by student insurance or have to switch to a different tariff depends not only on your income but also on the amount of time you spend self-employed.

Student insurance is possible if:

• You are under 30 years old or have not yet exceeded the 14th semester of study.
• Your self-employment is classified as a secondary occupation.
• Your monthly income remains below the minijob limit of €556 (as of 2025).

A switch to voluntary statutory health insurance is necessary if:

• You invest significantly more time in your business than in your studies.
• you regularly earn higher incomes.

This means your self-employment becomes your main occupation, and your health insurance company will no longer classify you as a regular student. Contributions are based on your income and typically range between €180 and €250 per month.

Start-up support for your business

Many universities and public institutions also offer targeted support to make it easier for young companies to get started.

The EXIST start-up grant is particularly well-known; it is awarded by the Federal Ministry for Economic Affairs and Energy and can be applied for through your university. It is aimed at students, graduates, and research assistants with an innovative, technology-oriented concept. Funding is provided for a period of twelve months and amounts to up to €3,000 per month.

Furthermore, many universities have their own entrepreneurship centers or start-up services, often operating under the umbrella of technology transfer centers. These offer support with creating business plans, conducting market analyses, and developing financing strategies. They also provide mentoring programs, access to networks, and in many cases, free workspaces or consulting services.

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