Keeping Your Side Hustle Legit

Keeping Your Side Hustle Legit We’ve all been fed a lie. Well, perhaps not so much a lie as an anachronism. We were raised to believe that if we worked hard, learned our craft, dedicated ourselves to our studies and paid our dues that the path to success would be laid bare before us. While this may have rung true for previous generations it certainly doesn’t bear scrutiny in the current job market or economic climate. This is the age of wage repression, of zero hours contracts and career stagnation. It’s an era in which an entire generation of well educated and hard working women and men are languishing in jobs that offer neither the pay, the opportunities nor the challenge that’s worthy of their talents. In an era where their best never seems to be enough, it’s no surprise that these enterprising people turn to side hustles in their free time to achieve economic balance and take their future into their own hands. There are a plethora of ways in which you can make money from home outside of working hours , many of which could eventually become thriving businesses. But if your side hustle is to be your passport to financial freedom and possibly even the start of a lucrative new career in entrepreneurship, it’s essential that you do it right and keep it legit. Your side hustle is a business, and that means you have certain obligations… Tax… It’s not optional However much money you make from your side hustle, you need to know that it is taxable income. If you fail to declare it to the IRS and are found out, the consequences may be serious and could at the very least torpedo your nascent business and your chances of financial freedom. And if you’re advertising your services online to gain custom, there’s a pretty good chance you’ll be caught out. The rule of thumb is that when in doubt you should always declare your income. The IRS is far more understanding when it comes to income they know about than income that is kept from them. Be sure to enlist the aid of a tax specialist to help with your tax preparation. They’ll help you stay on the right side of the IRS while also ensuring that you declare any tax deductible expenses incurred in the running of your side hustle. Incorporate your business While not a legal necessity in your early days, this is still a good idea, for your own protection. Incorporating your business will allow you to stay on the right side of financial compliance by keeping your business and personal finances separate. This will also insulate your personal finances should something go awry with your business. It can also help to protect you from intellectual property theft. If someone steals your ideas it can be difficult to prove in a court of law and you need to afford yourself whatever advantages you can. Whatever you do… Don’t use work time or resources Even if you hate your day job, there’s a good chance you rely on the income it brings you. So keep your side hustle on the side! If you dedicate your workplace’s resources like computers, telephones, stationery, photocopier or office space to for running your side hustle, this could land you in real trouble. This kind of activity may be seen as a breach of contract by your employer that could get you fired. Work on your side hustle on your own time. If you do it right and protect yourself, your side hustle could be your golden ticket to a brighter tomorrow.