How to register your own business: Gewerbe or Freiberufler

To work for yourself officially in Germany, you have to register your activity. The form depends on whether your profession is considered a liberal profession (Freiberufler) or a trade (Gewerbe).
What is the difference:

• Freiberufler — “liberal professions”: doctors, lawyers, translators, IT specialists, designers, teachers and so on. They register only with the tax office (Finanzamt), without the Gewerbeamt;
• Gewerbe — a trade: retail, craft services, beauty, repairs, most crafts. It is registered with the trade office (Gewerbeamt), and the Finanzamt is usually notified automatically;
• the Finanzamt makes the final decision on whether an activity is recognised as a liberal profession.

First steps:

• Gewerbe: submit a Gewerbeanmeldung to the Gewerbeamt of your city (often online) and pay a small fee;
• everyone — both Gewerbe and Freiberufler — fills in the “Fragebogen zur steuerlichen Erfassung” via the ELSTER portal within about a month; on that basis the tax office assigns a tax number;
• if needed, you can choose the Kleinunternehmer scheme right away.

Trade tax (Gewerbesteuer) arises only on profit above €24,500 per year; Freiberufler do not have it. The conditions depend on the type of activity and on the federal state — check an official source or consult a specialist.