Pros of Invoicing Without a Company: Is It Right for You?

Freelancing isn’t everyone’s cup of tea, but it’s a nice way to increase your income as there are a lot of freelance gigs available. For some, it’s a great replacement for a full-time job commitment, and you can earn as high as NOK 200,000 a year. That’s why it’s important for freelancers to get paid the right way.

Let’s discuss some of the best ways to get paid as a freelancer.

How To Get Paid as a Freelancer in Norway

Quick question - Did you know that:Over 22% of freelancers and small business owners experienced an increase in late or non-payments over the past year due to bad invoicing and payment methods? Using professional invoicing platforms can reduce payment delays by up to 30%!

Getting Paid as a Sole Proprietor

There are several ways to invoice and get paid as a freelancer, but the most common way is to invoice your client after completing a task or project and have them transfer the money into your bank account via the invoice you provide.

In Norway, this process is a little more complicated as freelancers are required to have a company to invoice and get paid. This is due in part to the tax regulations and requirements laid down by the Norwegian government. So as a freelance foreigner who may not be well versed in the local laws and regulations, this might not be the best invoicing and payment method for you.

Invoicing Without a Company: The Better Way to Get Paid

Even as a local freelancer in Norway, owning or starting a company to get paid is still quite a lot of effort. There’s a lot that might go wrong doing it yourself and tax calculations can be a serious headache.

The alternative is to hire an expensive accountant, or use platforms like PayoutPartner that can help you get paid quickly and easily.

Invoicing without a company allows you as a freelancer to bypass the hard work required to start up and register your company with the Norwegian government. It doesn’t end there; there are tax calculations that need to be done accurately to remain tax compliant, many of which have certain conditions and are subject to change at any time. This means that you will need to stay updated on local tax policies every time.

To learn more about the differences between invoicing without a company and invoicing with your own company, check here.

How PayoutPartner Can Help You Get Paid Easily

• PayoutPartner has a free invoicing software that you can use to create and send professional and compliant invoices to as many clients as you may have.
• The platform is easy to use and requires very little expertise with almost zero learning curve required.
• With PayoutPartner, taxes and tax benefits are calculated and awarded automatically based on the most recent tax laws. Once your client pays, we calculate and make all the necessary tax deductions before depositing the rest directly into your bank account.
• We payout multiple times a week, which ensures that you do not have to wait for only specific times a month to receive your salary.
• Competitive pricing at just 4.9% of invoice amount to process your payment.

Figuring Out What’s Right For You

Freelancing sometimes can be tedious work, and most people would rather not have to deal with all of the paperwork and mental gymnastics that comes with invoicing as a sole proprietorship. This makes invoicing without a company the best choice if you fall under this category.

For people who prefer to follow through each step in the process of how they get paid, or if you earn over NOK 200,000 a year, invoicing with your own company or hiring an accountant might be the way to go.