When am I required to become a legal business?

Question by Samantha Q.: When am I required to become a legal business?
I found many small business related questions, but not quite this one. I live in Minnesota. I sort-of fell into having my own freelance writing business. It started with one contract job, and now I have 4-5 regular clients. I have a part-time job, but I make more with my writing. I receive 1099-MISC forms from my clients so all of my taxes are fully documented. There is no cost to me for this business, beyond keeping my internet connection and a phone line. I sell informational articles and webcontent that I research and write myself basically. Is there a point at which I’m required to become a “real” small business, such as Sole Proprietorship? What are the tax benefits?

Best answer:

Answer by kathykoul
You don’t have to change anything your doing. A sole propietorship files the same taxes as does a single owner LLC company. So nothing would change.

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