Originally Posted by Piobaire
Thanks for the reply. Part of the problem I will come into, or anyone like me probably, is that employment contracts of this nature usually stipulate something to effect of no moonlighting and 100% of all work efforts will be for the organization. So basically I can't even on paper run a side business. Probably people with other employment arrangements could maybe do something like this, so I would be wrong in that case, but every employment attorney I've ever talked to about this area say that "no moonlighting" is in about 99% of all executive employment contracts.
Why would this be a problem? In the hypothetical just outlined (which is really just an example), you aren't running the side business, your corporation is. It's a separate legal person and isn't bound by your employment contract. The issue would be getting your employer to pay a part of your salary to your corporation and not withhold on it which I imagine many employers would balk at purely on the basis of administrative inconvenience. Also, what constitutes "moonlighting" isn't terribly clear; obviously your employer doesn't want you competing with it, but it has no reason to give a damn if you're running a completely unrelated side-business, i.e. renting out a couple of properties or financing a corner store.