What is bogus self-employment and how do I avoid it?

Bogus self-employment (Scheinselbstaendigkeit) occurs when you are formally self-employed but treated like an employee. The DRV (German Pension Insurance) checks four main criteria: (1) obligation to follow instructions, (2) integration into the business (fixed working hours, office presence), (3) no entrepreneurial risk of your own, (4) only one client (monopsony situation). Consequence if determined: social insurance contributions are reclaimed — retroactively up to 4 years. How to avoid it: multiple clients, own equipment, free scheduling, own terms and conditions. Recommendation: apply for a status determination procedure at the DRV if uncertain — free of charge, protects against back payments.