This transcript was generated from the episode audio and may contain minor errors.
[Music]
Starting a business, even a small business, even a side hustle can be a daunting task, especially when it comes to legal requirements and paperwork. Of course, it doesn't have to be daunting. A big thing of what we try to do here is create simplicity and reduce some of that complication and say, really, all you need is a product or a service, a group of people willing to buy it, even just one customer, actually, one customer, one client, and a means of exchanging payment. That's pretty much it for a side hustle. But today's caller, Alex, is new to the web development business and they're looking for guidance on how to establish a legal structure.
Okay, so that stuff is important as well. And naturally, they wanna make sure they set it up in a way that's efficient and effective, but they're also not sure where to start. So let's see if we can help Alex find a solution to this challenge. And by the way, my name's Chris Guillebeau. This is Side Hustle School.
So glad you're out there. Detailed question coming up after the break. [Music]
Good morning. My name is Alex and I'm calling from Miami, Florida. I found this podcast through a Google search for resources for side hustlers.
I've just started offering web development services and I got the idea after realizing that many small businesses need help with their websites but can't afford to hire a full-time developer. I'm eager to establish a solid legal structure for my business, but I'm not sure where to start. Can you offer any advice on how to set up a legal structure for my side hustle in a way that is efficient and effective? [Music]
Hey Alex, thanks for calling in from Miami. So glad you found the show and that you're taking the step to turn your web development skills into a side hustle.
All right, so a couple of practical tips that can help here. First things first, research your options. You've got a few different legal structures to choose from. You could just remain a sole proprietor. Nothing wrong with that at all.
I did that for many years. Eventually I created a corporation, an S Corp. You can also create a limited liability company or LLC. So do a bit of research on it. You may also want to consult a professional depending on your jurisdiction.
Well, we know Alex is in Miami, but we have a global community of people out there. And then once you've made that decision, you just got to register it. And most of the time it's pretty simple. You have to file some articles of incorporation. You have to obtain any necessary licenses or permits.
But honestly, this is something that can usually be done very quickly for less than a few hundred dollars online. Sometimes a business license is just $50 depending on, again, where you live. And you also want to, as you go along, keep accurate records. Make sure to keep accurate records of all your business transactions, including income and expenses, of course. It's going to help you stay organized.
It will also be useful whenever you have to provide documentation to an accountant or the government or anybody else that you need. So if you do those things, that will make sure you are in compliance and that you are, as Alex requested, efficient and effective. Respect those values. Good luck, Alex. Listeners, you've got a question, sign us on school.com/questions.
We'll continue to feature them each week along with updates from listeners as they launch their projects. I'm so excited to see so many of our listeners taking big steps, and I hope to hear many happy reports. All right, that's all for today. Thank you again. My name's Chris Guillebeau.
This is "Side Hustle School." [Music]
from the Onward Project.
