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Turn your side hustle into a real business. An LLC protects your personal assets, unlocks tax deductions, and builds business credit.
$50-$500
Formation Cost
State filing fee
100%
Personal Asset Protection
LLC separates business liability
$5-20K+
Tax Deductions Unlocked
Home office, equipment, mileage
Sole Prop vs. LLC
Business Entity Comparison
| Feature | LLC | Sole Proprietorship |
|---|---|---|
| Liability Protection | Yes — personal assets safe | None — personally liable |
| Setup Cost | $50-$500 + annual fee | $0 |
| Taxes | Pass-through (flexible) | Pass-through (Schedule C) |
| Credibility | Professional (LLC name) | Just your name |
| Banking | Business bank account | Personal account |
| When to Choose | Revenue > $5K/yr or any liability | Very small, no risk |
Choose Your State
File in the state where you live/operate. Wyoming/Delaware only make sense for specific situations.
File Articles of Organization
Online at Secretary of State website. Choose a name, pay fee, done in minutes.
Get EIN from IRS
Free, instant, online at IRS.gov. Your business 'Social Security number.'
Open Business Bank Account
Separate ALL business money. Never mix personal and business funds.
Set Up Bookkeeping
Wave (free) or QuickBooks. Track every dollar from day one.
Home Office Deduction
Dedicated space = deduct % of rent/mortgage, utilities, internet.
Vehicle Mileage
67¢/mile (2024) for business driving. Track with an app.
Equipment & Software
Computer, phone, tools, subscriptions — all deductible.
Health Insurance (S-Corp)
Elect S-Corp status at $50K+ profit to deduct health premiums and save on SE tax.
Retirement Contributions
Solo 401(k) allows $23,500 + 25% of profits. Massive tax shelter.
Quarterly Estimated Taxes
Key Takeaways