These days it’s easier than ever to start your own small business. Virtual markets make it simple for crafters and thrifters to sell items online. Blogging has helped many people launch consulting, writing and speaking careers.

Not to mention there are numerous websites and mobile applications to find freelance work in any industry imaginable.

The possibilities seem endless. Plus, you can start most of these without quitting your day job. It’s no wonder so many people are taking on a side business of their own.

A study on side hustles by found that about 37% of US workers have a side gig, making an average of $686 per month.

Side hustles are a great way to earn extra cash and test your entrepreneurial skills.  They’re also an excellent way to evaluate new business ideas before you quit your day job.

As exciting and easy as this can be, it’s important to consider legal factors.

A survey on small business trends from the Small Business Expo found that 51% of small business owners feel there is too much government regulation. The US Chamber of Commerce Foundations also found that the cost of regulations to small businesses with fewer than 50 employees is about 20% higher than the average for all firms. Do your homework to be sure you’re not stepping on any regulatory toes.

A few other legal points to keep in mind:

•    If your side business does similar work to your primary employer, you could be at risk of violating a non-compete clause.

•    Sharing your employer’s proprietary information can come with hefty fines.

•    Taking out a loan to get your business going? You might want to consider an LLC to protect yourself from personal liability.

Starting a business is an exciting prospect. Don’t let your great idea get ruined by legal issues. With proper awareness, it’s easy to avoid trouble.

For more information on what steps you can take to keep your side hustle on the right side of the law, check out the infographic below, courtesy of our colleagues at Lexington Law.

Tips to Keep Your Side Hustle Out of Legal Trouble

start your side hustle without legal trouble

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Andre Palko Owner
Andre Palko is founder of the Small Business Rainmaker™ and its free weekly e-newsletter. He is dedicated to delivering award-winning marketing and content that helps business owners thrive in any economy.