Updated on March 6, 2023 by David Korpel
The popularity of small business side hustles has skyrocketed in recent years as more people seek to supplement their income. A side hustle is a part-time business or job undertaken in addition to one’s regular day job. In this blog, we explore some reasons behind this trend.
One of the primary reasons people turn to side hustles is to improve their financial security. As the cost of living continues to rise, many individuals struggle to make ends meet on their regular salaries. A side hustle allows them to generate additional income, which can be used to pay off debt, save for a down payment on a house, or simply have more disposable income to enjoy life.
Side hustles can also give individuals a sense of independence and control over their finances. By relying solely on their day job for income, they put themselves at risk of financial hardship if something happens to their jobs, such as a layoff or downsizing. A side hustle provides an additional source of income that is not reliant on any one employer, thus mitigating this risk.
Another reason people turn to side hustles is to find fulfillment in their work. Many individuals feel unfulfilled or bored in their day jobs, and a side hustle can provide an opportunity to pursue a passion or interest that they may not have explored in their day job. This can provide a sense of purpose and fulfillment that may be lacking in their day job.
In addition to financial security and fulfillment, side hustles can provide individuals with valuable skills and experience that they may not be able to gain in their day job. For example, someone who works in marketing may start a side hustle creating social media content for small businesses, providing them with valuable experience working with various clients and developing their skills in social media marketing.
Finally, many people turn to side hustles because they want more control over their time. With a day job, individuals are typically bound to a set schedule and may not have much flexibility in terms of when and where they work. With a side hustle, individuals can often choose when and where to work, benefiting those who value flexibility and autonomy.
It is important to note that starting a small business side hustle comes with legal and tax implications. Even if your business is small, it’s essential to stay compliant with taxing authorities to avoid costly penalties and legal issues down the line. This is where the expertise of a professional CPA can be invaluable.
At ENGAGE CPAs, we understand the unique challenges that small business owners face and provide tailored solutions to help ensure compliance with tax regulations. We can help you navigate complex tax laws and regulations, prepare and file tax returns, and provide advice on tax planning strategies that can save you money in the long run.
Working with ENGAGE CPAs can also help you stay organized and avoid potential mistakes that could lead to an audit or other legal issues. By staying up-to-date with tax regulations and requirements, you can focus on growing your business without worrying about the legal and financial aspects of running a business.
In conclusion, small business side hustles can provide valuable additional income, but it’s crucial to stay compliant with taxing authorities to avoid any potential legal or financial issues down the line. ENGAGE CPAs can help ensure that your business stays compliant and organized, allowing you to focus on growing your business.
