Have you been selling homemade crafts or things from around your home on sites like Etsy or eBay? What about offering freelance writing, marketing, or web services to individuals or companies? If so, you should give some serious thought to making your side gig into an official business. There are actually many reasons to make your side hustle legit. Here are five key ways that you can benefit from making the transition now.
Once you’ve decided to make your side hustle legit, you’ll be able use business purchases as tax write-offs. By making your side hustle an official business, you have the ability to reap tax benefits that would otherwise be unavailable to you. Mashable has an amazing list of potential deductions you can use to make your business even more profitable come tax time.
Personal and Financial Protection
Another reason to make your side hustle legit is because it offers you both personal and financial protection. Specifically, as an individual, you have protection from lawsuits. For example, let’s say you sell goods on Amazon and, due to Amazon’s requirements, you ship your goods in a plastic protective covering. If, heaven forbid, that plastic were to be the cause of injury to another person or animal and the victim decides to sue you, they actually sue your business instead. This means that all of your personal assets, like your house, retirement accounts, and savings would be protected. If your business is not officially registered, however, all your personal assets are fair game in a lawsuit.
Access to Wholesalers and Expos
One of the best opportunities (and how I got my start) for side hustlers to make money is through selling on ecommerce sites such as eBay and Amazon. The hard things is finding things to resell. You’ll want to make your side hustle legit in order to gain access to wholesalers and their product catalogs because most will not deal with you if you don’t have a business license. Another great option for finding products and developing relationships with wholesalers is through expositions. One of my favorite expo shows is the ASD Market Week held each year in Las Vegas. Again, however, you have to have your resale license in order to participate in these events.
Ability to Vend at Conventions
Whether you’re selling goods, promoting your work as an author, or offering a service, it’s likely you’ll want to find ways to be visible to potential buys or clients. One way to do this is by participating as a vendor at conventions and festivals. Typically, conventions require you to have a resale or business license to participate, so you’ll need to make your side hustle legit before registering!
More Control over Your Own Life
This is perhaps the most important reason to make your side hustle legit: to gain more control over your own life. It’s no exaggeration to say that we are slaves to our work. When you work for someone else, they have ultimate control over your daily activities, as well as when you can take vacation. If working for someone else isn’t for you, consider taking control by making the decision to make your side hustle legit today.
Make Your Side Hustle Legit Today!
Ultimately, making your side hustle legit it offers freedoms, opportunities, and protections for you that can be critical in your future success. If your goal is to replace your current income and go full-time doing what you love, don’t wait any longer. Sign up for my 7-day email course, Starting a Business for Beginners. It’s FREE, so why not?