Do I need to register as self-employed?

Usually, if you are earning money working for yourself beyond a small threshold or once you start trading to make a profit, though the exact rule varies by country. In some places there is a specific registration step and deadline; in others, like the US, you are a sole proprietor automatically and simply declare the income on your personal return. The safe approach is to assume you have a tax obligation and check your local authority's threshold and deadline early.

Do I need to register to be a freelancer in the US?

There is no federal registration to be a sole proprietor: you are one automatically when you start working for yourself, and you report income and expenses on Schedule C with your personal tax return, paying income tax and self-employment tax. You may still want an EIN from the IRS (free), need to register a business name if you trade under one, and check your state or city for any licence or local tax registration.

How do I register as self-employed in Botswana?

Register for tax with BURS, and check whether your activity and location require a trade licence from your local authority, with business-name or entity registration handled through CIPA. The pattern across Southern Africa is to register for tax first, then confirm whether your specific trade needs a local licence or permit. This is general information, so check the current BURS requirements for your situation.

When do I need to register as self-employed?

Typically once your self-employed income passes your country's threshold or once you begin trading with the intention of making a profit, by that country's deadline. Leaving it late can bring penalties that outweigh the small effort of registering on time, so check your tax authority's threshold and deadline as soon as you start earning, rather than waiting until a tax return is due.

What is the difference between self-employed and a limited company?

Being self-employed (a sole trader or proprietor) means you and the business are the same person: simple to set up, with profit taxed as your personal income. A limited company or (Pty) Ltd is a separate legal entity with its own registration, liability separation, and more admin and cost. Most people start self-employed and consider a company later as profits grow or liability matters more.

Money and tax12 November 2026·8 min read·Written by Remit Team

How to Register as Self-Employed

Registering as self-employed sounds official and intimidating, but for most people it is a short admin task that mainly means telling your tax authority that you are now earning money on your own account. It is not the same as setting up a company, and in some countries there is barely a form to fill in at all. What matters is doing it at the right time and knowing what it does and does not involve, so you stay on the right side of the rules without over-complicating things. This guide explains what registering actually means, whether you even need to, how it works in the UK, the US and Southern Africa, and what to do straight after. It is general information, not legal or tax advice, and the rules differ by country, so always check your own authority.

A desk with a laptop and notes, someone registering as self-employed

What registering as self-employed actually means

In most countries, working for yourself as an individual is called being a sole trader (UK and Ireland) or a sole proprietor (US and much of Southern Africa). It is the simplest way to be in business: there is no separate legal company, so you and the business are the same person for legal and tax purposes, and your business profit is taxed as your personal income. "Registering" as self-employed usually means registering for tax, so the authority knows to expect a return from you, rather than creating any kind of company.

This is worth being clear about because people confuse two different things: registering as self-employed (a tax status for an individual) and registering a company (creating a separate legal entity, like a limited company or a (Pty) Ltd). They are not the same, they have different costs and obligations, and most people starting out only need the first. Our post on sole trader versus limited company covers when the second is worth it.

Do you even need to register?

Not always, and not always immediately. The trigger is usually earning income from self-employment beyond a small threshold, or past a certain date, and the threshold varies a lot by country. In some places you must register once your self-employed income passes a set annual figure; in others you register as soon as you start trading with the intention of making a profit; in others still, being a sole proprietor needs no registration to exist, and the only obligation is declaring the income on your personal tax return.

The safe rule is simple: if you are earning money working for yourself, assume you have a tax obligation and check your local authority's threshold and deadline early. Registering (or declaring) is almost always cheaper and easier than being caught not having done it, and the penalties for late registration can outweigh the modest effort of doing it on time. When in doubt, a short call or search on your tax authority's site settles it.

How to register, by country

United Kingdom. You register as a sole trader with HMRC for Self Assessment, usually online, once your self-employed income passes the annual trading allowance. You will get set up to file an annual tax return and pay income tax and National Insurance on your profit. The official steps are on gov.uk, and there is a registration deadline after the tax year in which you start, so do not leave it.

United States. There is no federal "register as self-employed" step: you are a sole proprietor automatically when you start working for yourself, and you report business income and expenses on Schedule C with your personal return, paying income tax and self-employment tax. You may still need to do three things locally: get an EIN from the IRS (free, optional for a solo sole proprietor but useful), register a business name if you use one, and check your state or city for any licence or local tax registration.

Southern Africa. In Botswana you generally register for tax with BURS (confirm the current process and any VAT registration threshold on burs.org.bw) and, depending on what you do and where, may need a trade licence from your local authority, with business-name or entity registration handled through CIPA; the BURS site sets out tax registration. In South Africa a sole proprietor registers for tax with SARS and declares the income on a personal return. Across the region the pattern is the same: register for tax first, then check whether your specific activity needs a local licence or permit.

What to do straight after you register

Registering is the start, not the finish. The habits that keep you out of trouble are simple: keep records of all your income and expenses from day one (a basic spreadsheet is enough to begin), keep your business money separate from your personal money so your figures are clean, and set aside a portion of what you earn for the tax bill that will come, since nobody is deducting it for you. Our guide on how much to set aside for tax gives a sensible starting figure.

The other thing to get right immediately is invoicing properly, because a registered business that bills on a scrappy note looks unregistered. Send clear, numbered invoices that carry your details, and keep a copy of every one, since your invoices are the income side of your records. With Remit you can send professional invoices for free and keep a running statement per client, so the paperwork your tax return depends on is tidy from your very first job.

Should you register as a company instead?

For most people starting out, registering as self-employed (sole trader or proprietor) is the right first step: it is simple, cheap and quick, and you can always form a company later when it is worth it. A company becomes worth considering when your profits grow, when you want the liability separation of a distinct legal entity, or when clients or a sector expect you to be incorporated. It also brings more admin and cost. The honest answer for a new freelancer or small trader is usually to start self-employed and revisit the question once you are established, which our sole trader versus limited company post walks through.

The short version

Registering as self-employed usually means registering for tax as an individual (a sole trader or proprietor), not creating a company. Whether and when you must do it depends on your country's income threshold and deadline, so check your own tax authority early, because it is far cheaper to register on time than to be caught not having done so. In the UK you register with HMRC for Self Assessment; in the US you are a sole proprietor automatically and report on Schedule C; in Southern Africa you register for tax (BURS, SARS) and check for any local licence.

Then keep records, separate your money, set aside for tax, and invoice properly from day one. This is general information and not legal or tax advice, so confirm the specifics with your local authority or an accountant for your situation.