# How do I start a business while working a full-time job?

Start small with a service you can deliver in evenings and weekends, keep the business money separate, and plan for taxes your employer does not withhold. For the 2026 tax year, self-employment tax of 15.3% applies once net earnings reach $400. The IRS says employees can raise paycheck withholding with a new Form W-4 instead of paying estimated tax. ProfitDrawer's side hustle tracker keeps side income apart from your job.

**Steps that fit around a job:**

1. **Check your employment agreement** for rules on outside work or competing with your employer.
2. **Pick work you can schedule:** weekend jobs, evening clients, or products you make ahead.
3. **Register lightly.** Many people start as a sole proprietor; check city and county licenses. An EIN from the IRS is free.
4. **Open a separate account** so business money never mixes with your paycheck.
5. **Keep startup spending low** and reinvest early income before buying better gear.
6. **Record every sale, expense and mile** weekly, so you know whether it actually makes money.

**Taxes on side profit (2026 tax year, filed in 2027):**

- Self-employment tax: 15.3% (12.4% Social Security plus 2.9% Medicare) when net earnings are $400 or more.
- Estimated tax: generally required if you expect to owe $1,000 or more, unless you increase withholding at your job with a new Form W-4.

The free self-employed tax calculator helps estimate how much to set aside. General information, not tax advice.

- Source: [Estimated taxes (IRS)](https://www.irs.gov/businesses/small-businesses-self-employed/estimated-taxes)
- Updated: 2026-10-29
- Published: 2026-10-29
- Category: Start a business
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- Publisher: ProfitDrawer (https://profitdrawer.com)