Side business and main business

In short: A side business runs alongside school, training, studies or a main job. A main business is the principal economic activity. The distinction affects health insurance, social security and duties.

In more detail: The trade office asks about it at registration. As a side business an activity usually counts if it takes under 20 hours a week and is not the main income source. This is not a fixed legal limit but a guideline of the social insurance bodies.

In detail

• Health insurance: people self-employed on the side often stay covered by family or compulsory insurance. A main business can change the insurance.
• Tax: the profit counts for income tax whether main or side business.
• Chamber of commerce, trade tax: apply in both cases.
• Training: side activities must not endanger the training goal (Side jobs during an apprenticeship).
• Switching: if the business grows, a side business can become the main business. Report that to the tax office and the insurer.

See also: Health insurance for young founders, Registering a business step by step