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If you’re finding that you’ve got extra time on your hands in 2025, it might be the perfect moment to launch your own side hustle. Or perhaps there’s a project you’ve been nurturing for a while, and now you’re ready to transform it into an alternative stream of income.
Starting your own business on the side is a fantastic way to do what you love and earn from it. But amid all the excitement and planning, it’s crucial to understand your legal situation and ensure you’re compliant with current regulations.
We know that thinking about your legal obligations when launching a side hustle can feel overwhelming. That’s why we’ve compiled the key legal considerations you need to be aware of when turning your side gig into a fully fledged business in 2025.
In this article, we outline common examples of side hustles and the essential legals you should be considering if you’re interested in these models. We also explain what to do if you’re starting a side business while still employed, so you don’t inadvertently breach your current employment contract.
Your Legal Obligations When Starting A Side Hustle
When you’re starting or growing your side hustle, it’s important to understand exactly where you stand legally and to ensure your business complies with the latest 2025 regulations.
The first step is to register for an Australian Business Number (ABN). If you’re still choosing between operating as a sole trader or incorporating your business, check out our detailed guide on the Sole Trader vs Company model to help you decide.
Having an ABN in place essentially means you’re recognised as an independent contractor or sole trader. You can learn more and register here.
Once your ABN is set up, you’re well-positioned to engage in commercial activity. But beyond this initial step, there are several other critical matters to consider:
- What are your income tax options?
- Will you need to contribute voluntarily to your super fund?
- Have you thought about the right insurance coverage?
- How will you manage your invoicing and payments?
If you’re unsure how to set up as a contractor in today’s evolving gig economy, we’ve put together a useful checklist for you here.
In addition to setting up your business, it’s essential to be legally protected in your interactions with customers. Ensuring that you have the right contract in place is often the first step. A clear agreement helps manage expectations, guarantees timely payments, and prevents unnecessary disputes.
There are various types of contracts available, and the best choice will depend on the nature of your work and how you engage with your clients.
Now, we’ll walk through some common examples of side hustles, outlining the contracts you’ll need if you decide to pursue these paths.
So, let’s dive into the key legal considerations you should be thinking about as you build your side hustle in 2025.
Working As A Freelancer: The Legals You’ll Need
Working as a freelancer is a brilliant way to develop new skills and generate income, all while enjoying the flexibility of a balanced work-life schedule.
Typically, you’ll be working with a range of clients who require your expertise. To ensure clarity and avoid misunderstandings, it’s vital to have a contract with each client-often known as a Freelancer Agreement.
A typical Freelancer Agreement will clarify:
- Scope of services: Precisely what services you will provide, and what is excluded.
- Liability protections: Who is responsible if something goes wrong.
- Intellectual property ownership: Who will own the work once the project concludes.
- Payment: How payments will be made and what provisions are in place for any delays.
Having these details outlined in writing ensures that you and your customers are on the same page, minimising the risk of miscommunication and future disputes.
Even if you have an excellent relationship with a client, having a clear contract can save you from potential headaches later on. Plus, you can often reuse your Freelancer Agreement, tweaking clauses as needed for each new project.
For more insights into why a solid contract is vital for freelancers, we’ve detailed this in our article here.
Offering Marketing Services: The Legals You’ll Need
If you’re considering a side hustle in marketing, it’s crucial to have a customised contract that reflects the unique nature of your services. In 2025, as digital strategies continue to evolve, ensuring that your agreements are current is more important than ever.
Independent contractors who offer a suite of marketing services-from graphic design and copywriting to SEO and strategic consulting-often work closely with clients. This may include accessing sensitive data and proprietary marketing materials.
To set clear expectations, you should document key details such as:
- Exactly which services you will deliver
- Key Performance Indicators (KPIs) and deliverables
- Measures for ensuring confidentiality and proper data protection
These points are typically captured in a formal document like a Marketing Services Agreement, which clarifies your service scope, payment terms, intellectual property rights, and confidentiality obligations.
Becoming An Influencer: The Legals You’ll Need
If your social media presence is growing and you’re aiming to secure brand deals, getting your legals in order is essential. In 2025, as influencer marketing continues to expand, having robust legal protections demonstrates professionalism and safeguards your partnerships.
An Influencer Agreement clearly outlines the relationship between you and a brand, detailing expectations, deliverables, payment schedules, and the duration and termination conditions of your engagement.
While brands often provide these agreements, it’s wise to have your own version available to ensure that the terms are fair and protect your interests. If you’re ever unsure about an agreement’s suitability, our team can review or even redraft the contract to better serve you.
Can I Start A Side Hustle If I’m Still Employed By Someone Else?
Starting a side business while employment provides a steady income is a smart strategy, especially as you test the waters without overcommitting financially. If your side hustle doesn’t work out, you still have your primary job to rely on.
However, there are important legal considerations. Your employment contract may contain restraint of trade or confidentiality clauses that restrict your external work. If your side hustle overlaps with your employer’s business or involves their intellectual property, it’s vital to get legal advice.
Having a lawyer review your employment contract can help you identify any potential conflicts. It’s also a good idea to have an open conversation with your employer about your plans and obtain their consent in writing – this ensures transparency and helps avoid future disputes.
Need Help?
No matter what stage your side hustle is at-whether you’re just planning or already scaling up-our team of legal experts is here to help.
Get in touch and we’ll ensure you have the legal protections you need to secure your business now and as it grows. Our legal consultants are available for a free, no-obligations chat on 1800 730 617 or via team@sprintlaw.com.au.
As 2025 unfolds, new digital challenges and regulatory updates continue to emerge. Whether you’re ensuring your online platforms comply with the latest privacy standards or updating your contracts to reflect current industry practices, staying proactive is key. For more insights, explore our guides on Website Terms and Conditions and Privacy Policies for online businesses.
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