side hustling

How to Keep Your Money and Ideas for Yourself: Tips for Side Hustling on the Right Side of the Law

There are numerous ways to test out the waters of entrepreneurship these days. Virtual markets make it easy for thrifters and crafters to sell items online. Many people have launched consulting, writing and speaking careers through their blogs. Not to mention the abundance of mobile applications and websites to find freelance work. The possibilities seem endless. Plus, you can start most of these without quitting your day job. This gives you time and stability to get your entrepreneurial career off the ground. It’s no wonder so many aspiring entrepreneurs are side hustling.

A side hustle can be a great way to start a business and make some extra cash. However, it’s important to consider what legal issues might arise. If your side business does similar work to your primary employer, you could be at risk of violating a non-compete clause. Taking out a loan to get your business going? You might want to consider an LLC to protect yourself from personal liability.

It’s also important to look at the laws and regulations that are specific to what you’re doing. Here are a few tips for two popular entrepreneurial paths:

Related: 4 Ways to Use a Personal Loan to Take Your Side Hustle to the Next Level


  • Paid content and promotion: The U.S. Federal Trade Commission requires that you disclose your relationship with any product you promote or endorse. If a company offers to compensate you for a post about their products, you will need to mark that post as a promotion or ad.


  • Sales tax: Online vendors usually need to collect sales tax from buyers who live in the same state where they have a physical presence. The site you’re selling on may have advice on how to collect that tax. You should also look into your state’s specific laws.

Entrepreneurship is an exciting prospect, and a side hustle can help you make the leap. Don’t allow your new business get stonewalled by legal issues. 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:

side hustling

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