Question
Can I start a business while working for another employer?
I have a full-time job, but I want to start a side business. Am I allowed to do both?
Answer
Yes, in many cases you can start a business while working for another employer. However, your ability to do so may depend on your employment agreement, company policies, the type of business you plan to start, and any legal obligations that apply.
Before launching your business, it is important to understand whether your new venture could conflict with your duties to your employer or violate any contractual or workplace requirements. Issues commonly arise when an employee competes with the employer, uses employer time or resources, solicits the employer's customers or employees, uses confidential or proprietary information, or pursues business opportunities that belong to the employer.
What employment issues should you review?
Starting a side business does not automatically create an attorneyblem, but some employment terms may affect your plans. Review whether you are subject to:
- Non-compete or non-solicitation agreements.
- Confidentiality or nondisclosure obligations.
- Conflict of interest policies.
- Restrictions on outside employment or business activities.
- Intellectual property ownership provisions.
- Industry-specific rules or professional obligations.
Understanding these requirements can help you avoid unexpected disputes. Reviewing these obligations before launching the business can reduce the risk of litigation or disciplinary action.
How can you reduce the risk of conflicts?
Many business owners successfully operate a side business while remaining employed by keeping the two activities separate. Consider:
- Running the business outside of work hours.
- Avoiding the use of your employer's equipment or resources.
- Keeping business information confidential.
- Avoiding competition with your employer when required.
- Separating your business finances from your personal and employment activities.
- Following any applicable workplace policies.
Taking these steps can help reduce the risk of conflicts as your business grows.
What to do next…
- Review your employment agreement and company policies.
- Identify any restrictions that may affect your planned business.
- Keep your business activities separate from your work responsibilities.
- Address any potential conflicts before launching your business.
What to consider in your specific situation
- Your employment agreement and workplace policies.
- The type of business you plan to start.
- Whether your business competes with your employer.
- Your access to confidential information or company resources.
- Industry-specific laws, regulations, or professional rules.
- The amount of time and responsibilities involved in both roles.
- Ensuring that your outside business does not interfere with your ability to perform your job duties or create attendance, performance, or availability issues.
Since every situation is different, consider getting more information through Rocket Copilot or an attorney review to move forward more confidently.
At Rocket Lawyer, we follow a rigorous editorial policy to ensure every article is helpful, clear, and as accurate and up-to-date as possible. This page was created, edited and reviewed by trained editorial staff who specialize in translating complex legal topics into plain language, then reviewed by experienced attorneys to ensure legal accuracy.
Please note: This page offers general legal information, but not legal advice tailored for your specific legal situation. Rocket Lawyer Incorporated isn't a law firm or a substitute for one. For further information on this topic, you can Ask an Attorney.
Need to make sure your business is properly registered?
Operating a business without proper registration can expose you to personal liability, tax complications, and legal action. Whether you need to fix past non-registration, understand how a side business impacts your current employment, or navigate tax obligations, Rocket Lawyer provides the tools and support you need:
- Rocket Copilot Q&A for instant legal information
- Ask an Attorney for human responses within a business day
- Business registration and other smart legal tools
Address your registration issues and protect your business with trusted legal support.
Explore more about operating a business without formal registration
Explore more about employer conflict and moonlighting
Starting a business while working for someone else can raise legal and professional questions. These questions explore conflicts of interest, whether your employer can stop you from running a side business, and if you can be fired for moonlighting or competing with your employer.
- What is a conflict of interest when starting a business?
- Can I start a business while working for another employer?
- Can my employer stop me from running a side business?
- Can I be fired for starting a business while employed?
- Do I need to tell my employer if I start a business?
- Can I run a business that competes with my employer?
- See even more questions about operating without proper registration
Explore more legal topics and questions
Browse related topics to learn more about contracts, common clauses, business filings, and other legal issues that may apply to your situation.
- Contract negotiation
- Contract enforceability and validity
- Breach of contract
- Term and termination clauses
- Relationship and scope clauses
- Intellectual property and confidentiality clauses
- Payment and work terms clauses
- Change and inclusion clauses
- Risk and liability clauses
- Dispute resolution clauses
- Required filings and deadlines
- Changes to a business
- Operating without proper registration
- What filings are required to start a business
Disclosures
- This page offers general legal information, not legal advice tailored for your specific legal situation. Rocket Lawyer Incorporated isn't a law firm or a substitute for one. For further information on this topic, you can Ask an Attorney.