Do you have an exciting business idea, but your full-time job already takes up enough of your time? Don't worry, it's possible to set up a successful business on the side! Our guide will tell you everything you need to know - from registering your business to the best tax structure.
Use our 10 tips as a guideline and turn your vision into reality without jeopardizing your current professional position. Simply stick to the following points.
1. clarify your start-up intentions with your employer
Before you start your own business, be sure to discuss your start-up plans with your employer. Pay particular attention to clauses in your employment contract that could restrict secondary employment. A clear agreement can not only create legal clarity, but also strengthen the relationship of trust with your employer.
It is advisable to conclude a so-called side agreement or supplementary agreement to your existing employment contract. This side agreement should make it clear that your self-employment is approved by your employer. This protects you from possible consequences under employment law and ensures that all parties are informed and in agreement about your additional activities. Ideally, have this agreement recorded in writing to avoid any confusion later on.
2. register your self-employed activity correctly
If you are self-employed, it is crucial that you register your activity correctly. Freelancers only need to register with the tax office and apply for a tax number. Freelancers are people who are self-employed in scientific, artistic, writing, teaching or educational professions - in other words, professions that require special professional qualifications or creative services. This process is usually straightforward and quick.
Tradespeople, on the other hand, are obliged to register their business with the trade office. This includes registering with the relevant Chamber of Industry and Commerce. Make sure you choose the right category for your self-employment to be on the safe side and meet all legal requirements.
Good to know: You must provide your business address to the trade office. To benefit from a professional image and avoid having to provide your private address, you can rent a business address from Office Club.
We have all the information on how to register your business with a business address and a virtual office from Office Club in this article for you in this article.
3. consider the small business regulation:
Small businesses are suitable for many part-time activities or for starting your own business, especially if your turnover remains below the statutory limit.
- What is the small business regulation?
The small business regulation is a tax relief that allows smaller entrepreneurs to waive VAT. This simplifies bookkeeping and tax returns considerably.
- What rules apply?
To qualify as a small business owner, your annual turnover must not exceed 22,000 euros. In this case, taxes are only paid once a year via the income tax return instead of quarterly. For more detailed information on the small business regulation, you can visit the information pages of the Chambers of Industry and Commerce (IHK), for example.
- When and how can you change your status from small business regulation to main business?
The change from small business regulation to main business takes place automatically when your turnover exceeds the above-mentioned limits. It is advisable to plan this transition carefully with your tax advisor in order to fulfill all tax obligations correctly.
- Service tip: Addition for invoices as a freelancer
If you write invoices as a small business owner, add the following addition to make use of the small business regulation: "In accordance with Section 19 UStG, no VAT is charged. " You do not list this on your invoice either.
Speaking of invoices...
4. take your bookkeeping seriously
Clear and well-organized bookkeeping is essential, especially if you run your own business alongside your full-time job. Here are a few simple tips on how to organize your bookkeeping efficiently.
- Process invoices immediately: Avoid a backlog by submitting invoices and receipts promptly or processing and filing them as soon as you receive them.
- Separate business and personal finances: Keep separate accounts and credit cards for your business to keep track and simplify bookkeeping.
- Regular updates: Set fixed times for weekly or monthly bookkeeping to check incoming payments and always be up to date. This avoids stress at the end of the year.
- Pro tip: Invest in accounting software. These tools are not only time-saving, but also help to minimize errors and ensure compliance with current regulations. Use the software to automate your financial processes and free up more time for your core business.
5. tax your income correctly
As already mentioned: If you opt for the small business regulation, you benefit from tax relief, but you must observe the annual turnover limit of 22,000 euros. The following also applies: As a part-time self-employed person, all your income - both from your main job and your part-time job - is taxable. In 2024, the basic tax-free allowance is €11,784 for singles and €23,568 for married couples; in 2025, this will rise to €12,084 and €24,168 respectively. Income that exceeds these limits must be taxed. Note that you can deduct many of your expenses as operating costs. For detailed advice and optimization of your tax situation, we recommend consulting a tax advisor.
6. have your insurance under control
Start by informing your health insurance provider about your side hustle - this is not only important, it's mandatory! Make sure that they accept your self-employment as a sideline to avoid unpleasantly high additional contributions.
The next step: check your insurance situation. In addition to health insurance, professional liability and business interruption insurance are particularly important to cover your sideline business. Find out thoroughly which insurance policies are sensible and recommended for your specific professional situation.
7 Time is gold - manage it like a pro
If you set up your own business alongside your full-time job, first-class time management is essential. Prioritize wisely: what needs to be done today and what can wait? Learn to say "no" without feeling guilty. Efficient working habits and smart prioritization will help you to balance the burden of your double workload.
Pro tip:Set clear boundaries between your job and side business and stick to them ironclad. This is the only way to avoid being overwhelmed and exhausted and always keep track of your projects. Use tools and methods such as time blocking to structure your days optimally and avoid wasting time.
8. use your permanent position as a networking springboard
Are you dreaming of really taking off with your self-employment? Then use the security of your main job - stable income, social security - as a foundation to build a strong network around your business idea. Attend specialist conferences, take part in workshops, listen to panels - whether online or offline. These are ideal opportunities to make contacts and start conversations. You'll be amazed at how the inspiration and valuable tips you gather along the way will help your business progress.
9. reflect regularly and make adjustments
Take stock after period X: where do you stand with your self-employment after three months or six months? Are your goals still on track?
Also regularly check your progress and the balance between work and leisure time: do you have enough time to regenerate between your permanent position and your self-employment? Remain flexible and ready to adapt your strategies. This will ensure that your side business not only runs, but grows successfully in the long term.
10. find the right balance between your job and self-employment
Has your business successfully established itself? Great! Now it's time to find a balance between your employment and self-employment. Consider whether it's possible to switch from full-time to a four-day week or part-time in your main job in order to put more energy into your own business. If you decide to do this, don't forget to inform your health insurance company of any changes: the contribution amount must be reassessed. Also check whether this will affect your other insurances or the handling of your taxes.
If you have previously run your business as an after-work project and want it to remain a sideline, establish fixed working hours for it. This will create a clear structure and promote the growth of your side hustle without overburdening yourself.
Conclusion: master the art of starting a business on the side
Your dream of having your own business idea doesn't have to wait until you give up your full-time job. You can simply get started and use the security of your current job as a springboard. With our tips, good advice and certainly a bit of perseverance, you can manage both worlds successfully.
Do you want to start a business alongside your job and need a professional working environment? At Office Club you can benefit from flexible workspaces to office space and open space workplaces you can find the workspace that suits you and your new business!
