Trade or liberal profession?

In short: A trade is any independent, lasting activity with the intention of making a profit, unless it is a liberal profession, primary production or managing your own assets. Liberal professions (doctors, lawyers, architects, artists) do not register at the trade office.

In more detail: The distinction matters for tax: traders pay trade tax (with an allowance) and are members of the chamber of commerce, liberal professionals are not. The boundary is not always easy. A listed profession under § 18 EStG (e.g. engineer, journalist, teacher) or a similar activity points towards a liberal profession.

In detail

• Features of a trade: independent, sustained, intention to make a profit, participation in general commerce.
• Liberal profession: personal, self-responsible, professionally independent service of a higher kind, often with special training.
• Borderline cases: web design, programming, tutoring: trade or liberal depending on scope and training. When in doubt, ask the tax office.
• Consequences: registration, trade tax and chamber contributions apply to trades only.
• For minors: even for liberal activities a minor needs the parents’ consent and, where applicable, the family court’s.

See also: Trade tax and allowance, Business registration and self-employment