Should You Register Your Blog as a Freelance or Commercial Business?
When starting a blog, the question arises: should you classify your activities as freelance or commercial? As a blogger, you might consider yourself a “freelancer” in essence. Bloggers and independent editors, who aren’t bound by external instructions, can certainly be considered freelancers, much like freelance journalists. The Revenue Agency is likely to follow this reasoning as well.
The Problem with AdSense Revenue and Commercial Activities
However, complications arise when it comes to AdSense advertising. In this case, you are essentially renting advertising space, and the profit from the business is generated through paid advertisements. Without advertising revenue, the entire business would essentially be non-functional. Renting advertising space is typically considered a commercial activity, not a freelance one. Even if your blog content focuses on informing the public about important or world-changing topics, the primary source of income remains the rental of advertising space.
This follows a sort of “principle of infection” where even a small commercial deal can transform the entire activity into a business. In rare cases, the tax office may classify your blog as a freelance activity, but in most instances, this will likely result in business registration.
What Legal Structure Should You Choose for Your Blog Business?
The next question is: what legal structure should your blog business take? Establishing a GmbH or a UG for a single-managed blog may seem excessive. Considering that average blog earnings from AdSense are often less than 100 euros per month—at best, a few hundred euros—setting up a company may seem over the top. You must also account for start-up costs and ongoing business expenses such as accounting, taxes, and administration.
Even if you have additional advertising revenue or earn between 2,000 to 3,000 euros per month, a sole proprietorship or GbR (partnership) is probably the most practical form of business. For a single blogger, these business structures are often sufficient to handle small-to-medium income streams.
When Should You Consider a UG (Limited Liability)?
Ultimately, the decision depends on the long-term goals of your blog business. If you plan to expand and run multiple blogs, increasing both your income and business scope, then founding a UG may make sense as a first step toward eventually establishing a GmbH. If you have the necessary start-up capital of 25,000 euros, setting up a UG could be more cost-effective as it requires a lower initial investment than a GmbH, and the capital can be reinvested into the company setup.
Final Thoughts on Choosing the Right Legal Form for Your Blog
In any case, whether you choose a sole proprietorship, GbR, UG, or GmbH, a detailed and realistic business plan with clear objectives and financial planning is essential. This will make the decision between different legal structures much easier to navigate.