I am accepting my first “side gig” contract position this week.

13 Comments

1. AnonymousFebruary 9,2025 at 5:10PM UTC

   - Create a seperate bank account to set aside money for taxes

   - Terms about intellectual property, or things created that must remain with the company

   - Terms about clients gained, and whether you may continue with them in the future; and what length of time may pass once you can work for the same clients again (basically anything conflict of interest)

   - malfeasance or malpractice insurance, similarly injury, death, and dismemberment insurance, is that on you or the company?

   - set operating hours or flexible?

   This is really dependent on the industry that you are in.

2. Emily GrahamFebruary 9,2025 at 5:18PM UTC

   Is there a limit to the time you'll give to the side gig? I'd ask them for expected time or projects/week. If they don't have an answer for you, set a boundary for yourself so you're not run ragged. Good luck!

3. AnonymousFebruary 9,2025 at 6:43PM UTC

   Don't double charge for the hours you're working. Otherwise, it's fraud. Most companies will just fire you of they find out.

4. Maureen CorbettFebruary 10,2025 at 1:35PM UTC

   Use separate computer or tablet

5. AnonymousFebruary 10,2025 at 10:02PM UTC
   1. If you haven't established a legal entity like a corporation or an LLC, do that first. If your gig doesn't work out, that will shelter your private life from any resulting litigation.
   2. A platform to do the work (laptop or tablet) is essential, so have them supply one.
   3. Don't do side gig work at your "traditional job" location, as that will cause a serious conflict.
   4. Keep meticulous accounting of what you earn (or, better, set up a bank account under your "LLC" name) to facilitate reporting taxes. Keep the money you earn there separate from your personal finances.
   5. Check out your state laws regarding your side hustle for business licensing purposes. There may also be city regulations.
6. AnonymousFebruary 15,2025 at 2:09PM UTC

   Ohh I will add to this, check if the company adds arbitration clauses to the contract and read that well. Sometimes they make you sign away every right to sue, but they retain their rights.

7. Ann GibsonApril 17,2025 at 7:37PM UTC

   Yes, set up an LLC so you can deduct your home (assuming that where you are working your gig) on your taxes.

8. AnonymousFebruary 12,2025 at 1:55PM UTC

   Watch out for conflict of interest issues with your main job and the side gig.

9. AnonymousFebruary 14,2025 at 1:11PM UTC

   Did they provide you with a contract that outlines the scope of work, pay, hours and how to report that, how you'll get paid, etc.?

10. AnonymousFebruary 15,2025 at 2:07PM UTC

    Read well the IRS description of independent contract, just search it like that and a list comes up. I had to leave my side gig when they sent a contract exceeding those limits. The taxes for that are way too high for you to be having any type of employee-like responsibilities.

    Also save receipts of everything you spent for office; mileage used for the gig, if any; medical expenses that are not covered by insurance or FSA, HSA; utilities, etc. I remember every year I said I would be saving it periodically and then at the end of the year was digging in my accounts.

    Apart from that, I hope you enjoy it.

11. AnonymousFebruary 15,2025 at 3:16PM UTC

    I would talk to a tax person to help guide you before you make the plunge - they can help get you up to speed on what can be written off, how to structure things etc. and absolutely you need a separate device to work on the side gig.

12. AnonymousFebruary 16,2025 at 8:41PM UTC

    Double check the health insurance. Two different policies could conflict.

    And double check with your primary employer’s policies, that is something you should have in writing (as Richard Marx sings, “it don’t mean nothing till it’s signed on the dotted line!).

    And before you check any of that, talk to your union rep! You’re not paying them dues just because! (if you have union, that is). HTH

13. Liz MilneFebruary 17,2025 at 1:29AM UTC

    Manage your time ferociously. Leave time for leisure and relaxing, as in set alarms when you're going to stop and start the gig work. Otherwise work expands to use up ALL your time...