LLC vs Sole Proprietorship for US Side Hustlers

Should you be a sole proprietorship or an LLC for your side hustle? This complete Smart Capital Masterclass breaks down the LLC vs sole proprietorship decision for US side hustlers in 2026 — real costs by state (New Mexico $50, Delaware $300, California's $800 annual franchise tax), the self-employment tax of 15.3% that applies to BOTH structures, liability protection with a real example, and the exact profit level ($60,000-$80,000) where the S-corp election starts saving you thousands. In this video you will learn: • What a sole proprietorship actually is (and why it costs $0 to start) • How an LLC creates a liability wall between your business and personal savings • Why an LLC does NOT save you taxes by default (the myth, busted) • Real LLC filing costs by state + annual reports + registered agent fees • When a sole proprietorship is enough vs when an LLC makes sense • How to get a free EIN in 5 minutes and open a business bank account • The piercing-the-veil mistake that destroys LLC protection • Quarterly estimated taxes: the 25-30% rule that prevents tax-time shock • The S-corp election: how it works, when it pays, and the reasonable-salary rule • DBA registration, business licenses, and the operating agreement Related: side hustle taxes 2026, small business structure, self employment tax explained, start an LLC, sole proprietorship taxes, s corp vs llc, how to form an LLC, business taxes for beginners. Watch next: LLC vs Sole Proprietorship for US Side Hustlers — Part 3    • Top 5 Gold and Silver ETFs to Hedge Market...      • Smart Capital: Complete Personal Finance &...   Subscribe to Smart Capital for daily money lessons: real numbers, real examples, no fluff. Disclaimer: This video is for educational purposes only and is not financial advice. Always do your own research or consult a licensed financial advisor before making financial decisions.