How to run a side business as a self-employed person
Many employees dream of becoming self-employed. But is self-employment really for you? How about becoming self-employed on a part-time basis first? This way you can test whether you like the life of being your own boss.
Start your own side business – with Foundera
There are many advantages to being self-employed in your spare time: your main job provides you with financial security. This allows you to gain initial experience of what it's like to be self-employed in a relaxed way. You can also take your time to see whether your business idea works in the market.
Have you already decided on the legal form for the company with which you want to be self-employed part-time? You are free to do so, even as a sideline – you can found a sole proprietorship or a limited liability company (LLC) or a limited company. All types of companies come with their own unique challenges. To make sure you do everything right from the start, it's best to get support from Foundera when planning your part-time business. This will give you maximum security:
- The exact costs – you know what you have to pay for your foundation as a self-employed person. This allows you to plan much better financially.
- The smaller time investment – with us, you get the knowledge you need to start your own business. This saves you a lot of time.
- A reliable partnership – we are at your side even after the foundation and accompany you. So that everything goes well for you.
Self-employed as a sideline – pros and cons
Anyone can work as a self-employed part-time entrepreneur, provided they can find time alongside their main job.
Beware of double the workload
You should also be aware that a part-time self-employment can be very stressful – after all, your evening off sometimes seems a long way off if you work full-time in your main job and are also involved in your part-time business. It's logical that you can't just jump right in with a part-time self-employment. After all, you still have plenty of other obligations!
More money in your pocket
When you add the profits from your self-employment to the income from your main job, you have more money in your pocket – for travelling, for a new car, for your dream home. You can also invest this additional income in your self-employed part-time job so that one day you can become a full-time boss. This way, your self-employed part-time job also becomes an investment in your future!
Depending on the type of part-time job, your income can vary greatly from month to month. Our tip: make sure you have enough funds in case one month doesn't go so well.
Realise your true self
Be honest: many employees work in jobs that they don't fully enjoy. If you're one of them, a part-time self-employment might be a way for you to still realise your dream business. You can try out whether you really want to be self-employed with very little risk. And whether your dream job is actually what you want it to be.
Learn a lot
You can learn a lot of new things by taking on a second job. And not just about the industry and the services you offer. You'll also learn about accounting, marketing, networking... everything you need to know to become your own boss.
Magdalena and her flower workshop
40% sideline, 60% employment and lots of good ideas: That is the recipe for success of Magdalena, who set up her flower business on the side in 2019. In her own studio, the trained florist realises decorative concepts for weddings, corporate events, restaurants and hotels – with great attention to detail and craftsmanship. Regarding her foundation, she says: ‘Get support from the very beginning! It's impossible to think of everything.’
Die rechtlichen Voraussetzungen für eine nebenberufliche Selbstständigkeit
- Registering with the old-age and survivors' insurance (OASI)
- File a tax return
Of course, you have to declare your income from part-time self-employment in your tax return. If you have founded a sole proprietorship as a sideline, both your incomes will be taxed together. In the case of a limited liability company (LLC) or a limited company (Ltd.), double taxation comes into play: the company's profit is taxed directly – if you pay yourself a profit distribution, you have to pay tax on it again as income. - Your part-time work must not compete with your main job
If you want to start a part-time business, you must always observe the so-called duty of loyalty. This means that your part-time business must not compete with your main job.
It goes without saying that your sideline business must not have any negative impact on your main job – so you must not turn up at work without enough sleep. Or do anything on the side that could damage your employer's reputation. Such actions could result in instant dismissal – or even claims for damages!
By the way: you are generally not required to inform your employer that you have started a side business. However, check your employment contract to see if it contains a provision regarding a second job. Regardless of this, we recommend that you communicate transparently with your employer before you start your side business, so that no tensions arise between you and your employer.
FAQ «Part-time self-employment»: You ask, Foundera answers
What types of company can be founded as a sideline?
In principle, all of them! You can found a sole proprietorship, a limited liability company (LLC), or a limited company (Ltd.). However, the rules remain the same whether you work full-time independently or only part-time. For example, you must register your company in the commercial register if your turnover exceeds CHF 100,000. At Foundera, we always recommend registration to strengthen your reputation.
How can Foundera support me in part-time self-employment?
We are at your side from the planning and implementation to your everyday life as a part-time self-employed person. You benefit from our expertise and comprehensive support – so you can be sure of playing it safe.
We also help you with decision-making on issues such as: Which company form is suitable for your project?
Can you be employed and self-employed in Switzerland at the same time?
Yes, you can fulfil both roles at the same time, even if you are self-employed on a part-time basis. The only important thing is the duty of loyalty, i.e. if you are self-employed on a part-time basis, you must not compete with your main employer. And your secondary occupation must not damage your employer's reputation – but that goes without saying.