Legal Matters

Self-Employment for Online Consulting: A Complete Guide to Registration

· 9 min read

Self-employment is the simplest and most affordable way to legally provide online consulting services in your country. Registration takes 10 minutes, taxes start from 4%, and no declarations are required. However, there are nuances that are important to know before you start.

This guide contains everything an expert needs to know about self-employment: from registration to when it's worth switching to a sole proprietorship.

What is self-employment and who is it for

Self-employment (professional income tax, PIT) is a special tax regime for individuals providing services without hired employees. It is valid throughout your country.

  • Consulting psychologists
  • Coaches and mentors
  • Tutors
  • Legal consultants
  • Nutritionists
  • Business consultants
  • Marketers and SMM specialists

How to register as self-employed

Registration is available in three ways: through the “My Tax” app (iOS/Android), through the Public Services portal, or through a partner bank (Sber, Tinkoff, and others).

  • Download the “My Tax” app
  • Log in through Public Services or using your TIN + passport
  • Select your region of activity
  • Confirm registration – done

The entire process takes 5–10 minutes. Self-employed status is activated instantly.

Self-employment taxes and limits

4% – when working with individuals. 6% – when working with legal entities and sole proprietors. Income limit – $24,000 per year (approximately $2,000 per month on average).

Tax bonus – $100, which is automatically applied and reduces the rate to 3% (individuals) and 4% (legal entities) until the bonus is exhausted.

How to issue receipts to clients

After each payment, a self-employed individual is obliged to issue a receipt through the “My Tax” app. This is done with a couple of taps: you enter the amount, a description of the service, and send the receipt to the client.

On platforms like Geniuz.io, the process is simplified – the system can remind you to issue a receipt after each paid session.

Self-employment restrictions for consultants

  • Cannot hire employees
  • Income limit of $24,000/year
  • Cannot provide medical services (but consulting is not medicine)
  • No contributions to the pension fund (can be done voluntarily)

When to switch to a sole proprietorship

Switch to a sole proprietorship when: your income approaches the $24,000/year limit, you need an assistant, or you want to work with large corporate clients.

The transition is not mandatory – many experts work as self-employed for years. A sole proprietorship makes sense with a stable income above $1,500–$2,000 per month.

Start consulting legally today. Geniuz.io supports self-employed individuals and sole proprietors – payments, receipts, and scheduling all in one place.

Create Page →

Frequently asked questions

Can I be self-employed and work under an employment contract?

Yes, you can combine them. Self-employment is for part-time work outside your main job. You cannot provide services to your current employer as a self-employed individual.

Is a cash register needed for self-employed individuals?

No. Receipts are generated free of charge in the “My Tax” app. No cash registers are required.

What happens if I exceed the income limit?

Self-employed status is canceled. Income above the limit is subject to a 13% personal income tax. It is recommended to switch to a sole proprietorship in advance when approaching the limit.

Can a self-employed person accept payment from abroad?

From individuals – yes. From foreign legal entities – no, such income does not fall under PIT.