Side hustle vs. full-time job: Tax implications and tips?

Question:

So, say you're running a small business (on the VAT system), things are tanking, and you need a side hustle just to stay afloat—but you aren't ready to shut down the LLC yet. How does that work with filing taxes and paying those self-employment taxes? Like, do I even still have to pay them?

1. What if I pick up a part-time gig somewhere else?

2. Or what if I land a full-time job at another company?

Thanks in advance.

Case 2 is pretty straightforward. It’s a small business owner who also holds a regular job elsewhere. There’s no monthly payroll tax filing; instead, contributions are settled at year-end based on reported income, capped at what they would owe if they weren't employed elsewhere.

I don't know Case 1 off the top of my head. I'd need to dig through the IRS code and specific regulations to be sure. If it's handled like Case 2, it sounds like there might be a loophole to lower the business taxes by reporting minimal hours at the main job, but I doubt the authorities would allow that... Need to read up on it (not feeling it right now, though. Let me know if you find out, I'm genuinely curious).

Jeremy Cruz46 said:Question:

So, say you're running a small business (on the VAT system), things are tanking, and you need a side hustle just to stay afloat—but you aren't ready to shut down the LLC yet. How does that work with filing taxes and paying those self-employment taxes? Like, do I even still have to pay them?

1. What if I pick up a part-time gig somewhere else?

2. Or what if I land a full-time job at another company?

Thanks in advance.

Your other employer has to report you at least at the minimum rate required for an LLC owner keeping books, but obviously for full-time hours. You'll just need to make sure you opt out of your own self-employment contributions through the business.