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Side Hustle vs Full Time

Forum|Forum|3 years ago
August 31, 2022
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I have started an online teaching coaching business while working a full-time job (hoping to fully transition to my online full-time).

?? Am I considered self-employed?

Best answer by kdevere

Hi Connie -

Since you are also employed through an employer, you would be considered employed with self-employed income as a side business, or gig.
Generally, you are self-employed if any of the following apply to you.

You carry on a trade or business as a sole proprietor or an independent contractor.
You are a member of a partnership that carries on a trade or business.
You are otherwise in business for yourself (including a part-time business or a gig worker).

K

kdevereAnswer

Hi Connie -

Since you are also employed through an employer, you would be considered employed with self-employed income as a side business, or gig.
Generally, you are self-employed if any of the following apply to you.

You carry on a trade or business as a sole proprietor or an independent contractor.
You are a member of a partnership that carries on a trade or business.
You are otherwise in business for yourself (including a part-time business or a gig worker).

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Connie CAuthor

Thank You @kdevere

I have incorporated into an LLC (state of Louisiana), where I am the majority member and my husband is the other member.

?? From the second bullet mentioned - being a member of my LLC (partnership) >> am I self-employed and employed by my full-time company?
?? is that possible?

I appreciate your time and sharing your expertise.

Wishing you a splendiferous day!

K

kdevere

Great question Connie - f you are a member of an LLC or partner, then that is technically self-employed income, as you are an active participant which would make it ordinary income subject to self-employment taxes. A partner cannot be an employee of an LLC they are a partner in, so you would be considered self-employed.

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