FAQ for Tax Pros: Starting a Business as a Side Hustle (in-person)

Starting a side hustle is exciting — but understanding the tax impact is critical from day one. Whether you're freelancing, selling products online, consulting, or providing services, the IRS considers this business income, even if it’s part-time. That means proper reporting, tracking expenses, and planning for self-employment taxes are essential.

Key tax considerations include:

• Choosing the right business structure (Sole Proprietor, LLC, S-Corp)
• Tracking deductible expenses (home office, mileage, software, supplies)
• Understanding self-employment tax obligations
• Making quarterly estimated tax payments
• Keeping clean records to avoid penalties

For additional Wake Tech offerings, click on this link: WTCC