By Payrollplus, 14. June 2022
Becoming self-employed on a part-time basis is an attractive option for aspiring entrepreneurs. It involves less risk, as you can continue to cover your living costs with income from your main employment. This means you are not dependent on income from the new business. Additionally, you get the opportunity to observe and get to know the market over a longer period.
Part-time employment is defined as pursuing an economic activity alongside your main employed occupation. You can be either self-employed or employed in your secondary occupation. It’s important that the income from the part-time activity must be significantly smaller than that of the main employment. Furthermore, the part-time activity should take place outside the working hours of the main profession and in a different field.
Generally speaking, there is no rule of thumb that states who is suitable for part-time self-employment. However, there are aspects that you should be aware of before deciding on self-employment as a secondary occupation.
The first requirement that must be met is having a secure main employment. The main employment will be responsible for covering living costs, especially at the beginning of part-time self-employment. So you need a main job that can guarantee a suitable income.
Another important point is a person’s personal capacity for stress. Part-time self-employment brings additional strains. In combination with the main employment, you have a double burden.
Anyone who wants to become self-employed on a part-time basis must keep some legal aspects in mind. Part-time self-employment must, among other things, be in accordance with the duty of loyalty. Specifically, this means that the activity must not compete with that of the employer of the main profession. Furthermore, you must not damage the reputation of the company. It should also be noted that the performance in the main employment must not be impaired by the secondary employment. The topic of the duty of loyalty is discussed in more detail on the federal government’s website.
Another legal aspect that must be considered is registration with the AHV (Old Age and Survivors’ Insurance). Registration with the compensation office is mandatory for annual income over CHF 2,500 in secondary employment. More general information on the topic of registering self-employment in Switzerland can be found in our article on this.
As with main employment, income from part-time self-employment must be declared in the tax return. If you have a sole proprietorship as a secondary occupation, the business income is taxed together with private income. For a GmbH (limited liability company) or AG (corporation), the so-called double taxation applies. The salary and profit are taxed in the form of income tax and profit tax.
Anyone considering becoming self-employed on a part-time basis should familiarize themselves with the advantages and disadvantages. We have created an overview for this.
Yes, you can be employed and self-employed on the side at the same time. It is important that you fulfill the duty of loyalty to the employer of the main employment.
Part-time self-employment is defined as the pursuit of a self-employed economic activity alongside the employed main professional activity. The income from the main employment must be significantly larger than that of the secondary employment.
Basically, you need the same prerequisites for part-time self-employment as for full-time self-employment. This includes elements such as a business idea and a business plan. More information on the topic of becoming self-employed can be found in our article.
Basically, there is no income limit for earnings from secondary employment. However, it should be noted that for annual income over CHF 2,500, the self-employment must be registered with the compensation office.
How freelance secondary activity is taxed depends on the legal form. If you operate as a sole proprietorship in secondary employment, the income from it is taxed together with private income. For an AG or GmbH, double taxation applies. The salary and profit are taxed separately.
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