Do I Need an LLC for My Side Hustle?

Side Hustle? Here's When You Might Need an LLC

Side hustles are exploding right now—whether you’re freelancing on weekends, flipping items on eBay, or running a niche Shopify store. But when does that hustle need to be backed by an LLC?

Spoiler: not always. But in certain situations, forming one makes a ton of sense.

First, What Are You Doing—and How Risky Is It?

Ask yourself:

Are you selling physical products?
Are you handling sensitive client data?
Are you giving advice that could backfire (consulting, coaching, etc.)?
Are you driving revenue consistently?

If the answer is yes to any of these, the liability protection of an LLC might be worth it.

LLCs vs. Side Hustle Simplicity

Here’s the breakdown:

Without LLC (Sole Proprietor)With LLCEasiest way to startLegal separation from you personallyNo filing or formation costsProtection from lawsuits or debtAll income reported on your tax returnMore credibility for partnerships and clientsFull personal risk (you are the business)Costs $50–$300 to set up, depending on your state

An LLC isn’t legally required—but it gives you a protective shield if your side hustle grows or gets sticky.

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So When Should You Get One?

✅ You’re earning more than $1,000/month
✅ You’re doing work that could open you to liability (consulting, wellness, etc.)
✅ You want to open a business bank account or get a small biz loan
✅ You’re serious about growing your side hustle into your main gig

If you're not there yet, you're fine running lean—but put it on your radar.

How to Form an LLC for a Side Hustle

It’s easier than most people think:

Choose your state and business name
File Articles of Organization online
Get an EIN from the IRS (free!)
Keep personal and business finances separate

You can DIY it or use services like ZenBusiness or LegalZoom to simplify things.

Side Hustle Now, Structure Later?

You can wait to form an LLC, but don’t wait too long. If you’re building something real, give it the protection it deserves.

Hoopr Media Can Help You Go From Side Hustle to Serious

Your side hustle deserves more than hustle. At Hoopr Media, we help small and solo businesses grow smart—from branding to websites to digital marketing strategies that scale.

Let’s make your side project the real deal. Reach out and we’ll show you how.

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