Author Topic: Should I start an LLC for side hustle?  (Read 2285 times)

john6221

  • Stubble
  • **
  • Posts: 128
Should I start an LLC for side hustle?
« on: December 09, 2016, 01:30:37 PM »
My cousin has asked me to make some repairs on a property that he owns and if things go well I can see this handyman-for-hire turning into a side hustle.

I live in MN and have researched laws regarding licensing. I am allowed to apply for an exemption as a residential remodeler since I make less than 15k. By doing this I would then have a state license number and could apply for permits on his behalf.

In order to apply for the license exemption, I have the opportunity to apply as an individual or form an LLC.

My question is: should I form an LLC for this type of work? Will it be a tax hassle? Is it worth it for liability purposes?

Thanks for your advice.

Sent from my XT1575 using Tapatalk


john6221

  • Stubble
  • **
  • Posts: 128
Re: Should I start an LLC for side hustle?
« Reply #1 on: December 12, 2016, 12:20:11 PM »
Wow..crickets?

Sent from my XT1575 using Tapatalk


brute

  • Pencil Stache
  • ****
  • Posts: 691
Re: Should I start an LLC for side hustle?
« Reply #2 on: December 12, 2016, 12:24:53 PM »
You should do some serious research into the various types of corporate structures available. In my opinion, you want something more than a sole proprietorship, but I can't tell you if an LLC is right or not. You will absolutely want something that protects your personal assets from being a part of a claim though.

Papa bear

  • Handlebar Stache
  • *****
  • Posts: 1072
  • Location: Ohio
Re: Should I start an LLC for side hustle?
« Reply #3 on: December 12, 2016, 12:52:59 PM »
Take a look at what insurance will cost you for this as well. 

I have an LLC for a business, but it is not in labor and it involves more than just myself.  If this is just you, the LLC is a disregarded entity, so your taxes will be treated as if you are a sole proprietor on schedule C regardless (unless you make an election for S Corp or C Corp).  I would imagine the only upside to the LLC would be for liability, but since it is only you doing work, I'm not sure how this would help.  I am not a lawyer and can't speak to this.  For liability purposes, you will need to look at additional insurance. 

Sorry to give you a non answer, but just maybe some things to think about.




Sent from my iPhone using Tapatalk

john6221

  • Stubble
  • **
  • Posts: 128
Re: Should I start an LLC for side hustle?
« Reply #4 on: December 12, 2016, 05:28:34 PM »
I guess my thought was more along liability. If I do work for someone, and they sued, I wanted to protect my personal assets.

Sent from my XT1575 using Tapatalk


Papa bear

  • Handlebar Stache
  • *****
  • Posts: 1072
  • Location: Ohio
Re: Should I start an LLC for side hustle?
« Reply #5 on: December 12, 2016, 06:14:04 PM »
Again, I'm no lawyer. 

But if you do the work as the "employee" (which you wouldn't be unless you go S or C Corp), the "employee" could be sued and the business as well.  I'm not sure that the LLC would protect you at all in that situation.

Although I could be completely wrong. 

Mustachian lawyers assemble!


Sent from my iPhone using Tapatalk

john6221

  • Stubble
  • **
  • Posts: 128
Re: Should I start an LLC for side hustle?
« Reply #6 on: December 13, 2016, 08:56:15 AM »
Ok...need do to some more digging. I don't ever plan on hiring employees. I would just be sole proprietor. Just wanted to make sure I was protecting myself.

Sent from my XT1575 using Tapatalk