Wednesday, February 16, 2022

4 Things You Need to Protect Your Retirement Side Hustle

Having a side hustle throughout your retirement is a fantastic option to increase your income, however, there are a few things you need to get in line to make sure that it is protected.

Most of these things are simply quick fixes that are definitely worth doing to future-proof your side hustle. Invest some time and a small amount of money now and you will reap the benefits in the future.

Choose A Legal Structure

Although you might have already done this, we must mention it to start with. You need to make sure that you have associated your business with one of three legal structures; a sole trader, partnership, or limited company. 

If you haven’t, you might face issues later down the line, so getting this right if you haven’t already is important.

When you register yourself as self-employed, you will automatically become a sole trader. If you face any debts, this does mean you are responsible and your personal assets could be at risk if you can’t pay them. 

Another option if you have joint ownership with someone else is to register as a partnership. There are different types of partnerships depending on your business, some with fewer obligations than others.

Finally, you can set up a limited company, where your personal assets are separate from the business assets. This is a big advantage, but there are many more legal obligations involved that you need to learn about. 

If you are unsure, there are so many different guides online or you can discuss this with a business advisor to make sure you are making the right choice.

Protecting Your Intellectual Property

If you have developed a new product, service, or brand for your side hustle, it is important that you protect it by trademarking your intellectual property. 

This could be anything that you have created, from brand names to new technology, products, or symbols. Not only will this make sure that you protect your own business and ideas from being ripped off by other people, but you will also make sure that you’re not infringing on other people’s businesses so you don’t face any legal issues later down the line. 

Even if your business only generates a small amount of your income, this is a really important step regardless to future proof the business.

Have The Right Insurance

Every business should have some kind of insurance, and if you don’t, you might find that you come to regret the decision later down the line. 

It is best to work with a broker for this, to make sure that you find the right insurance depending on your specific side hustle. If you work on a credit basis for your side hustle, you might need whole turnover insurance if your business is particularly high risk. 

Perhaps for your specific business, you will need property insurance, liability insurance, workers compensation insurance, the list goes on!

The best piece of advice we can give you is to go to a broker and they will be able to assist you with getting the right cover for your business at the right price.

Make Sure You’re Paying The Right Tax

No matter how big or small your side hustle is, you need to report your earnings to the government. This income will be classed as self-employed income, so it is important you report anything to the HMRC or another relevant governing body. 

Tax is a very complex thing to get your head around, so it is always worth contacting a professional accountant to make sure you aren’t paying too much or too little tax. 

This will make sure that your business isn’t hit with any huge and unexpected tax bills in the future!

Final Thoughts

If you invest in these things now, it will certainly be worth it in the future. Protect your retirement side hustle and your future!

No comments:

Post a Comment

Join 1000's of People Following 50 Plus Finance
Real Time Web Analytics