.png)
Legal Considerations for Side Projects
Key legal aspects for launching side projects in 2025.
Trusted by incredible people at
Understanding Your Employment Contract
Starting a side project in 2025 demands a thorough understanding of your current employment agreement. Many contracts may contain clauses that restrict your ability to engage in side businesses. Key terms such as intellectual property (IP) rights, non-compete clauses, and confidentiality agreements need close examination. It's critical to ensure your side project doesn’t breach any of these terms.
Intellectual property is particularly crucial. Your employer might claim ownership of any related ideas or inventions you work on, even if they are outside of business hours. Clarifying this clause will help avoid potential conflicts.
Choosing the Right Business Structure
A legal consideration for any side project is determining its business structure. In 2025, you can choose from sole proprietorship, partnership, LLC, or corporation. Each has its implications on taxes, personal liability, and ongoing administrative requirements. LLCs and corporations are popular for side projects due to their liability protection and tax flexibility.
For example, an LLC might be an ideal structure if you anticipate scaling your project. Alternatively, operating as a sole proprietor can be simpler for less risky projects.
Licensing and Permits
Before launching your side project, verify if you require any licenses or permits. In 2025, digital platforms are more stringent about compliance. Whether it’s a local business license or a specific industry permit, ensure you are operating legally. This is particularly crucial for side projects that plan to utilize AI technologies.
Speaking of AI, platforms like Appaca can assist in building AI-driven applications, ensuring your project is compliant with current laws and regulations.
Start your side project with Appaca - no coding required
Features
Build AI-powered Apps in Minutes
Create your own full-stack agentic application for your businesses. Ship AI solutions for your customers with nice user facing interface.
Create user interface for your AI Apps
Use a variety of pre-built UI components in the app editor. No coding required. Highly customisable.
Create custom workflows and logic
Power your applications with automated workflows. Build logics for your AI apps. Integrate with third-party tools via APIs and Webhooks.
AI-native infrastructure
Easily create any AI model based on LLMs like ChatGPT, Gemini, Claude, DeepSeek, or image models like Flux and Stable Diffusion.
You can charge your users for AI usage with Appaca's AI credits billing system.
Authentication and User Management
Every app built on Appaca comes with an authentication system. Once your app is live, your users can sign up and log into the account.
Easily manage your own users.
.png)
Database
Appaca comes with built-in database that allows your AI apps to easily store data without having to connect to any third-party databases.
Create as many tables as you see fit for your app.
Monetize your AI app
All AI apps built on Appaca is powered by Stripe payment system. One click to setup your payment account and enable monetization.
Create subscription plans for your AI apps and configure how much AI credits you want to charge your users.
.png)
Steps to Legally Start a Side Project
- Find your unique value proposition: Identify what makes your idea stand out.
- Consider how AI can enhance it: Think about how AI tools, such as Appaca, could improve your proposition.
- Check your employment contract: Review terms related to side projects. Look at IP clauses and other restrictions.
- Settle on a business structure: Choose between sole proprietorship, partnership, LLC, or corporation based on your goals.
- Get necessary licenses and permits: Research local and industry-specific permits.
- Build an online presence: Develop a website and utilize social media platforms for marketing.
- Create an account on Appaca: If your project is AI-related, use Appaca to streamline your development process.
- Prepare your resources: Gather relevant files and web pages to aid AI integration.
- Design the app's interface: Work on an engaging and user-friendly app design.
- Customize the AI model: Use tools like Appaca to train the AI to suit your specific needs.
- Add extra features: Consider including widgets for user engagement like chat support or forums.
.png)
"I've built with various AI tools and have found Appaca to be the most efficient and user-friendly solution. In a world where only 51% of women currently integrate AI into their professional lives, Appaca has empowered me to create innovative tools in record time that are transforming the workplace experience for women across Australia."
Cheyanne Carter
Founder, Edubuddy
"At ai.boop.solutions, I was searching for a tool that would help me build an AI-based support platform for aspiring entrepreneurs, but I didn’t have the resources to develop the entire architecture myself. Appaca.ai was designed precisely for this purpose. It offers a user-friendly interface packed with features and versatile components that you can combine in countless ways. The team is incredibly supportive, and I confidently recommend it to anyone with a great idea but without a full IT department to back them up."
Katalin Dörnyei
Founder, Boop Solutions
FAQs
What legal documents are needed for a side project?
Necessary documents often include a business plan, operating agreement (for LLCs), shareholder agreements, a clear IP assignment document, and appropriate licensing and permits depending on your project's nature.
How can I protect my intellectual property in a side project?
To protect your IP, consider patents, trademarks, or copyrights. Drafting a clear non-disclosure agreement (NDA) for collaborators is also vital, ensuring all involved parties understand their obligations.
Is an LLC suitable for a side project?
An LLC can be a great choice due to its flexibility and limited liability protection. It separates personal and business finances and offers varied tax benefits, making it ideal for scalable projects.
Should I consult a lawyer about my side project?
Yes, consulting a lawyer is advisable, especially to review legal documents like employment contracts and to ensure compliance with licensing and IP laws. Legal advice can prevent costly mistakes.
What is Appaca?
Appaca is a no-code platform for building AI apps. You can use Appaca to build complete AI products for your startups, businesses, or customers without requiring developer help. The platform supports various AI models including ChatGPT, Gemini, Claude, and Flux Image model.
What is an AI Credit?
AI credits are the system to bill AI usage. Appaca uses that AI credit system to streamline the usage of different AI models in one go. You can use any AI model across your application. For the cost of AI credit for different AI models, please see our pricing page.
Can I make money with the app I built on Appaca?
Yes, you can monetise your AI app easily. All you need to do is to enable monetisation in your app with one click. You will be prompted to set up Stripe account easily. Once you have enabled your monetisation, you can create subscription plans for your app.
For the usage of AI, our AI credit system allows you to bill your customers. You can simply set how much credit you want to charge for your customers. It all comes out of the box.
Can I get more credits?
Absolutely. You can top up AI credits as much as you want if your credits are low.
Can I connect my custom domain to my app?
Yes, you can use your own custom domain name as long as you are on any paid plan.
Are there integrations?
Yes. You can integrate with other third-party tools via API or Webhook in your action workflows builder. We are frequently shipping native integration as well.
Start building today
Create AI products and solutions today for your business. Build, Ship, and Earn.
.png)
