I have a full-time job (not self-employed) and I'm thinking about starting a small LLC for a side project, selling handmade stuff online, nothing huge. Is it legal to do that while employed? Do I need to tell my boss? I keep hearing mixed things about liability and taxes. I'd rather not quit my job.
Side Hustle
Can I run a side business through an LLC while keeping my job?
Keep your job. The LLC is just a container. As long as your employment contract doesn't say 'no moonlighting,' you're probably fine. Check for a non-compete or IP clause.
Do you need to tell your boss? Legally? Usually not. Practically? Depends on your company. I wouldn't volunteer it unless you're using work time or resources.
what kind of 'handmade stuff'? if it's soap, my cousin did that and her employer tried to claim her Etsy shop was a 'conflict of interest.' absurd.
Mostly ceramics, and some prints. Nothing related to what my company does. No using work laptops.
LLC won't protect you from Your employer's policies, that's the thing. It's for liability and taxes, not job security. Read your handbook.
Right. And if you're in the US, an LLC by default is a pass-through entity, so you just file a Schedule C on your personal return. Not scary, just extra paperwork.
lol just don't start an LLC for $200 a month in sales, the annual fees alone will eat you alive.
true. in California the LLC minimum tax is $800/year. I waited until I was making decent money before forming mine.
Also check your state's rules. Some require a business license even for a home-based craft business. Not a lawyer, but I got dinged for that once.
And separate bank account. Non-negotiable if you actually want the liability protection. Commingling funds is a fast way to lose it.
I'm in Texas if that changes anything. Sounds like separate account + read the handbook + maybe wait on the LLC.
Liability protection only matters if someone could sue you. For ceramics? Maybe if a bowl explodes. But it's not zero. Just weigh the fees.
Also taxes. Side income means quarterly estimated payments if you make enough. Don't forget that in April.
Honestly the biggest issue for most people is just time. You'll be working evenings. Good luck with that.
Yeah, the time thing is real. I'll probably just start as a sole prop and and see if it's worth the LLC later. Thanks for the pointers.