Start a sole trader business

What is a sole trader business?

A sole trader business (enskild firma, or enskild näringsverksamhet) is a business form where you, as a private individual and sole owner, run the business and are responsible for it. The business is not a separate legal entity. There is no clear boundary between you and the business, and your personal identity number is the business's corporate identity number (organisationsnummer).

• Personal liability: you are personally responsible for contracts and debts. If there is not enough money in the business, you pay with your private money.
• No capital contribution: there is no requirement for start-up capital.
• Taxation: the business is not taxed separately. The profit is taxed in your name as income from business activities, and you pay self-employment contributions (egenavgifter) instead of an employer paying employer contributions. For the 2026 income year, self-employment contributions are 28.97 per cent if you were born in 1959 or later.

How to start a sole trader business

You register the business using the e-service at verksamt.se. There you apply for F-tax (F-skatt), register for VAT and, if needed, register as an employer with the Swedish Tax Agency (Skatteverket). Matters handled by the Tax Agency are free of charge. If your turnover is low, you may be exempt from VAT.

In most cases, registration with the Companies Registration Office is voluntary. It gives you name protection in your county if you want to use a business name other than your own first name and surname. Registration is required if the business meets at least two of the following three conditions in each of the two most recent financial years: more than 50 employees on average, a balance sheet total of more than SEK 40 million, or net turnover of more than SEK 80 million. It may also be needed for public procurement or for certain permits. The fee in 2026 is SEK 1 800 via the e-service and SEK 2 100 on a paper form, according to the Companies Registration Office's fee table.

Bookkeeping and annual accounts

The obligation to keep accounts applies from day one. Each year you close your books with annual accounts, which form the basis for the NE appendix (NE-bilaga) in your income tax return. If net turnover is normally no more than SEK 3 million, the annual accounts may be prepared in a simplified form. Only larger sole trader businesses, using the same thresholds as above, must prepare an annual report and have an auditor.

Since you pay tax and self-employment contributions yourself during the year through preliminary tax, it pays to check your result on an ongoing basis, so that your final tax does not come as a surprise.

When is it time to switch to a limited company?

There is no fixed amount in kronor that decides it. The questions that usually carry the most weight:

• The risk in your assignments: in a limited company, the owners have no personal liability for the company's debts.
• Profit that is to stay in the business: a limited company's profit is taxed at the corporate tax rate, 20.6 per cent in 2026, instead of being taxed in your name.
• Co-owners: if there are to be several of you, a trading partnership (handelsbolag) or a limited company are the alternatives.

We compare the business forms in limited company or sole trader. Once you have decided, we help you start a limited company. If there will be two or more of you, read about how to start a trading partnership.

How we help you

• A review of whether a sole trader business suits your business activities
• Registration on verksamt.se: F-tax, VAT and, if needed, employer registration
• Bookkeeping in Fortnox from the very first voucher
• VAT returns, annual accounts and the NE appendix

If the business has low activity and no employees, Mini from SEK 750 a month is often enough. See all packages and prices and our page on how to start a business.