The Danger of the Side Hustle

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Live webinar took place on 02-17-2022 @ 03:00 PM ET
Shiloh
Benji

Q&A

When paying taxes quarterly versus the end of the year, is it the same frequency as personal taxes?

It depends on the entity. I think what the person is saying is like, is the cadence to which you pay your estimated taxes the same for personal versus business. And that depends, it depends on what kind of entity you are. If you're operating as a slide hustle, you're operating as a sole proprietor, which means it's the same. If you're operating as an LLC or a corporation, well, not LLC, but partnership or corporation, according to IRS, then it's something.

What's the range of money I need to make to be considered a side business?

Truthfully, that's a pretty general question. There is never a wrong amount to say that you made in a side business, whatever you made, you should say that you made. There isn't, I don't think any penalization for making over a certain amount or not, whatever you made, you should say that you made. I think the difference comes in when you are under-reporting, if you have 1099s or any kind of evidence that you made money that someone else gave you money, you should be reporting it. The odds are the IRS already knows anyway. So, you just would be reporting it as a sole proprietor. Remember, if you're operating as a side hustle, you're actually a sole proprietorship.