Can I use umbrella employment and be a sole trader at the same time?

Yes. You invoice assignments in your business yourself; you can invoice other assignments through us. The same assignment must not be invoiced both ways.

Do I need F-tax to invoice through you?

No. We employ you for the assignment and you have ordinary employee tax (A-skatt).

What does it cost to switch to a limited company later?

It depends on your circumstances. We work it out with you and help you set up the company when it pays off.

Umbrella employment, sole trader or limited company?

There are three common ways to invoice for your work. The best option depends on how much you invoice, how often and how much administration you want to handle. Here are the differences at a glance.

Umbrella employment, sole trader or limited company?
Comparison	Umbrella employment through Scale	Sole trader (enskild firma)	Limited company (aktiebolag)
Your own company	No	Yes, registered with Skatteverket (F-tax)	Yes, registered with Bolagsverket
Start-up cost	None	Low	Share capital of at least 25 000 kr plus a registration fee
Bookkeeping and year-end accounts	No, we handle everything	Yes, ongoing bookkeeping and an NE appendix in your tax return	Yes, bookkeeping, annual accounts and a company tax return
Tax and contributions	We deduct tax and pay employer contributions	You pay your own social security contributions (around 29 %) and tax on profits	Corporation tax of 20.6 % on profits; salary and dividends to you
Personal liability	No – you are an employee	Yes, you are personally responsible for debts	No, normally limited to the company
Cost with Scale	4 % of what you invoice, capped at 3 000 kr a month	–	–
Best suited to	You want to get started straight away, invoice occasionally or avoid administration	You invoice regularly and want your own business with a low start-up cost	You invoice a lot and regularly – salary and dividends may then leave you with more

Umbrella employment through Scale

Your own company: No
Start-up cost: None
Bookkeeping and year-end accounts: No, we handle everything
Tax and contributions: We deduct tax and pay employer contributions
Personal liability: No – you are an employee
Cost with Scale: 4 % of what you invoice, capped at 3 000 kr a month
Best suited to: You want to get started straight away, invoice occasionally or avoid administration

Sole trader (enskild firma)

Your own company: Yes, registered with Skatteverket (F-tax)
Start-up cost: Low
Bookkeeping and year-end accounts: Yes, ongoing bookkeeping and an NE appendix in your tax return
Tax and contributions: You pay your own social security contributions (around 29 %) and tax on profits
Personal liability: Yes, you are personally responsible for debts
Cost with Scale: –
Best suited to: You invoice regularly and want your own business with a low start-up cost

Limited company (aktiebolag)

Your own company: Yes, registered with Bolagsverket
Start-up cost: Share capital of at least 25 000 kr plus a registration fee
Bookkeeping and year-end accounts: Yes, bookkeeping, annual accounts and a company tax return
Tax and contributions: Corporation tax of 20.6 % on profits; salary and dividends to you
Personal liability: No, normally limited to the company
Cost with Scale: –
Best suited to: You invoice a lot and regularly – salary and dividends may then leave you with more

Umbrella employment – get started straight away

You do not need your own company. You agree the assignment and price with the client, and we invoice them. Once the client has paid, you receive your salary within 1–3 working days, with tax and employer contributions already paid. You receive a payslip and holiday pay, and your salary is recorded as ordinary income from an employer.

Sole trader – your own business with a simple start

A sole trader business (enskild firma) is easy to start, but you handle bookkeeping, VAT and tax returns and pay your own social security contributions (egenavgifter). You are personally responsible for the business’s debts. It suits you if you invoice regularly and want to build your own business.

Limited company – when you invoice more

In a limited company (aktiebolag), the company pays tax on its profits and you can take a salary and dividends. It involves more administration, but can leave you with more when you invoice a lot. Read the guide When does a limited company pay off?

Start simply – switch when it pays off

Many people start with umbrella employment and set up their own company as their invoicing grows. With us, you can do both: we are an accounting firm and help you set up your limited company, then handle the bookkeeping when the time is right.