Article „Self-employed – to be or not to be?“ by attorney-at-law Jaak Siim
In the article „Self-employed – to be or not to be?“ (accounting news Raamatupidamisuudised No 7, 2016) attorney-at-law Jaak Siim has written about the (dis)advantages of an employer who is a natural person and analysed if such business form has got any future in the Estonian entrepreneurship.
Art 78 of the Commercial Code prescribes that a sole proprietor (self-employed natural person) shall be liable for his or her obligations with all of his or her assets. However, full liability means that the person is subject to fulfil the occurred obligations at the account of his or her personal property, regardless of the fact if these assets were used in entrepreneurship or not. In other words, the liability covers both the assets used in business activities and personal property.
This means that poor economic decisions or simply general worsening economic environment may affect the self-employed natural person much more than a person acting through private company, and bring along drastically negative consequences up until bankruptcy.
The full article in Estonian can be read by the subscribers of the magazine. Short introduction can be found here.