{ "media_type": "text", "post_content": "Taking on my first freelance side hustle project, and it’s pretty big. Now I’m stressing logistics. Start an LLC? Filing taxes? Do I need a separate bank account? I’d appreciate any tips/resources!", "post_id": "5bce7171f195200012e90ac2", "reply_count": 11, "vote_count": 4, "bowl_id": "5908c9d5f735ee00105b9fa4", "bowl_name": "WFH Freelancers" }

Taking on my first freelance side hustle project, and it’s pretty big. Now I’m stressing logistics. Start an LLC? Filing taxes? Do I need a separate bank account? I’d appreciate any tips/resources!

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Don't stress. I didn't incorporate until this year and I've been doing this for 4 years. No need for a separate bank account unless you are incorporating, and that's mainly to make your life easier because of accounting stuff. In terms of taxes, you will need to declare the income, so be prepared to pay taxes on whatever you're taking home; be sure you're putting a chunk of it away in savings. Keep track of any expenditures that go towards the project bc you can write them off when it is time to file. And best piece of advice I can give you is this — when freelance becomes your full-time focus vs side hustle you should absolutely get a great account who specializes in freelance / independent contractors. Good luck!

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For now start an llc. I would look for accountant to advise you on withholding for now and to do your taxes year end. You don’t need one but it’s worth it. Put away 25-30% for taxes, or you’ll be in trouble. Separate bank account is not necessary, but worth it to compartmentalize money. If this wasn’t a big job I’d say just do sole prop.

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I’ve been doing this for over 20 years and never had separate anything. :) with the new tax law, you should be able to keep 20k before you start figuring taxes on it (according to my accountant) but as the others say, keeping a big chunk aside for taxes is wise

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Just chiming in to say it helps to have brunch or a real meeting with a lawyer, peers, accountant as you get setup. You can avoid some hiccups!

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Don’t complicate it. Especially if it’s your first side hustle. Do work. Send invoice. Get paid

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If you have an LLC or other form of corporation you do legally need a separate business bank account, just want to make sure that’s clear. Otherwise your personal assets aren’t protected.

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*accountant

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I’m W2 all the way. Never LLC’d and I’ve been doing this for decades. I have them take out an extra $500 per check and I put about half aside for taxes. Works for me.

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No need to incorporate yet.

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Keep it cheap. LLCs need to file paperwork every year. 1/3 for taxes, 1/3 for saving, 1/3 for monthly budget.

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Thanks so much for all of the tips! Luckily I’ve got a lawyer in the fam. Asking him for some LLC tips this weekend!

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