Starting your own business: sideline or main activity? We help you make the right choice!

Making the jump to being self-employed as your main activity

Becoming self-employed as your main activity is a pretty big step. It means you are deciding that from now on, you will devote most of your time to your self-employed activity. From a legal standpoint, this means more than half of your time.

You’re also prepared to be dependent on the financial results of that activity. Of course, it is essential to consider realistic scenarios. In the best-case scenario, someone working on a self-employed basis as their main activity earns a direct income from their work. If the results of your new business are good, you will reap the benefits.

However, self-employed status brings with it certain limitations:

1. If you want to work as an employee or civil servant as well, you can only do it part-time.
2. If you want to move into teaching, your teaching schedule (as a named teacher) cannot exceed 60% of a full-time schedule.

Finally, as a self-employed individual – whether it’s your main activity or a sideline – you must also meet certain obligations.

1. You must be affiliated with a social insurance fund for self-employed workers.
2. You must pay your social security contributions every quarter.
3. If you are not exempt, you must declare and pay VAT.
4. You must declare your income every year and pay the corresponding taxes.

Being self-employed as a sideline: the best of both worlds

If you work on a self-employed basis as a sideline, you combine two professional worlds. On the one hand, you are an employee or civil servant, and on the other hand, you’re developing your own project and reaping the benefits. 

From a legal point of view, your self-employed work will be classed as a sideline if you are:

1. An employee, temporary employee or non-permanent teacher working at least 50% of full time
2. A civil servant (or permanent teacher) for at least 200 days or 8 months per year
3. A permanent teacher working at least 60% of full time

It’s also possible, in certain conditions, to have a sideline if:

1. You receive invalidity benefit from your mutual insurance company
2. You receive an unemployment allowance

Note that even if you’re working on a self-employed as a sideline, you must affiliate with a social insurance fund for self-employed workers, pay quarterly social security contributions and register for VAT (if you are subject to it).

If you choose to work on a self-employed basis as a sideline, there are several advantages. For example, you continue to acquire social security entitlements thanks to your status as an employee. You will therefore qualify for greater benefits if you become unable to work or when you retire. But this status also presents advantages in terms of social security contributions. If you earn less than €1,815.41 per year, you can recover the full amount of contributions paid.

Finally, you also have the possibility of deducting professional expenses on a flat-rate basis if your spending is low. This flat rate is 30% of your income (subject to an upper limit), which is a considerable benefit.
However, be careful to monitor your income closely. Because the tax authorities add your self-employed income to your salary from your main activity, you could end up in a higher tax bracket. So it’s advisable to consult an accountant.

Sideline or main activity, how do you make the right choice?

It’s obviously essential to remain reasonable and keep an eye on the figures. But the choice of status – self-employed as your main activity as a sideline – also depends on your current professional situation.

Do you dream of being your own boss? Having the freedom to manage your time as you want? Reaping the benefits of your work, even if it means facing many challenges? In this case, being self-employed as your main activity is for you.

Or does the possibility of combining a steady job with self-employed work appeal to you? Would you like to have a safety net while developing your personal project? In that case, it’s better to start working on a self-employed basis as a sideline.

Give your business project wings with the many benefits of the Starters Kit.

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