Two tips to convert a side hustle into a successful business

| Feb 11, 2021 | Business Formations, Business Tax

Technology advances have arguably made the ability to start a business easier than ever before. We can start our own websites and expand our markets throughout the country, and even globally, with little more than a push of a button. Taking these steps may seem overwhelming, but it is possible to make that side hustle into much, much more. The following tips can help:

Tip #1: Invest in your hustle.

Your side hustle is unlikely to grow without investment. Whether this means putting money towards a professional looking website or buying tech tools that you need to market your idea, consider using some of the earnings from your day job to fund this investment.

A recent article in MSN sums it up nicely: think of it is a way to mitigate the risk. Instead of leaving your full-time job to focus solely on growing your side hustle (risky!) you can fund your side hustle with a portion of the paycheck from your current job.

Tip #2: Prepare to transition into a business.

When does a side hustle morph into a business? One clear example is when you take the step to incorporate your side hustle. Whether incorporating as a limited liability company (LLC) or a corporation, this step transforms your hustle into a legitimate business. It now has legal protections, an official name and tax obligations.

Yes, taxes. It is important to plan for the impact of taxes on this transition before taking the step. It is a good idea to seek professional help when taking this step. The attorneys at Goldburd McCone are familiar with the tax implications that come with this transition. They can review your business strategy and guide you through the process, mitigating the tax bill and better ensuring a successful launch.