Does anyone here do work on the side?

If so, I could really use some advice on the legal implications.

I've posted about this once before, but I'll use this thread for all future discussion on the matter.

I'm interested in this. Not necessarily "starting my own business" so to speak, but from time to time I have people ask me if I do work on the side. I know that eventually, if I desire, I will be able to get more customers as well. I want this to be done legally if and when it happens.

If I get an offer one day to do $1,000 worth of work, I want to know that I can do it legally without any hassle. On the other hand, I could easily go weeks or months with no income from the side business, due to my full time job, certification study, girlfriend, etc....

I have already checked with my city. In addition to local/state/federal taxes, I am required to pay a $2 a week fee, get a $90 contractor's license and pay monthly for General Liability Insurance.

Is there any way "around" these requirements? Upon reading, technically if you do work regularly and try to grow what you have, you are considered to be in business for yourself and need a license.

So, basically, am I screwed because it's all or nothing? It seems like this system was designed for those who are only going to go all out, putting everything they have into the business and doing nothing else.

I can't afford monthly General Liability Insurance, a $2 a week fee, plus all of the taxes on top of what I do make, when at the absolute most we're talking around 10 hours worth of work a week. For the first 6 months or so, it will probably be more like 10 hours a month, if that.

I know local and state laws differ, but to anyone who is or has been in this situation, please comment on this. I'm kind of at a loss right now.

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Comments

GT-Rob

If you are doing the work "under the table", or for cash, then you can pretty well do whatever you want. I don't think the IRS is going to bust down your door for it for fixing your neighbour's computer for $20

However, if you want to do work for businesses, then you are going to have to be legal about since they will be filling what they pay you as an expense.

I don't see why you need insurance. I incorporated my business for a couple hundred bucks and that was it. And even that was only required if I make more than $30k/year through the business.

/usr

I will be doing work for business and the reason I want to do it legally is the exact reason you posted, I know it will come back on me when they turn it in as an expense.

stlsmoore

Yea I turned down work for that exact reason a few small businesses (very small0 wanted me to fix some PC issues. I knew if anything were to happen though I would be screwed legally.

albanga

By the sounds of things it sounds like it would be a very minimal amount of work to get started. What i would be doing in your shoes is "under the table" or "cash" jobs. Do this until you build up a small clientele that it actually starts to become a business instead of just "that guy you call to get your computer fixed".

Once you can see a sustainable amount of work coming through then consider going about it the right way. I guess the main thing to make sure you are doing is giving them correct information and advice. We all know when you fix Joe Bloggs computer next door that usually an unvalid copy of windows makes its way onto the system. Make sure everything you are doing or installing is valid.

garv221

Get yourself an LLC and have checks made out to the LLC. That is what I do.