This is the last installment of a four-part series on how to navigate taking on a side job or starting a business in addition to your regular employment. If you missed the earlier parts, click here to read them from the beginning!
In all four of these posts I discussed various ways to protect yourself and your side business from potential hazards. If you have considered these factors and decided to move forward with your new venture, there are a few last tasks you should take care of to cover all of your bases.
First, set up a company. Even if you are contracting, and not creating an entirely new venture, you should separate your contracting business from your full-time job. You can do this by forming an LLC, a corporation, or establishing your self as a sole proprietor. There are low-cost ways to do this and taking this step can prevent major headaches in the future.
Either way you want to make sure that the money you receive from your new gig is kept separate from your full-time salary. This will make life easier for your accountant later and allow you to write off expenditures for your side business. You can do this easily by opening up a separate bank account for the new venture. A separate bank account will keep you from mingling the funds until Uncle Sam gets his piece.
Keep in mind that a few simple steps early on can protect you from a host of hassles down the line. It is always better to be over-protected when it comes to your money and your business.