Setting Up Your Business as a Gig Worker or Independent Contractor

Many people are earning money through Amazon deliveries, Uber, Lyft, DoorDash, direct sales, referral marketing, and multi-level marketing (MLM). Whether you’re driving, delivering, selling, or promoting, you’re running a business—even if you don’t think of it that way!

But are you set up properly to protect your income, maximize tax deductions, and build long-term success? Here’s what you need to know to operate like a business owner and not just a side hustler.

Step 1: Understand That You ARE a Business

Gig workers and independent contractors aren’t employees—they are self-employed business owners. This means:

✅ You are responsible for your own taxes.

✅ You can deduct business expenses to reduce your tax burden.

✅ You need to track income & expenses to avoid IRS issues.

✅ You have the opportunity to scale & grow your business.

Step 2: Choose the Right Business Structure

Operating as an independent contractor? You still need to formalize your business to protect yourself and take advantage of tax benefits.

✔ Sole Proprietorship – Easiest setup but offers no legal protection.

✔ Limited Liability Company (LLC) – Protects your personal assets and adds credibility.

✔ S-Corp (for higher earnings) – Helps reduce self-employment taxes if you’re making a lot of money.

💡 Tip: If you’re earning over $30,000+ a year, an LLC or S-Corp may be worth considering to save on taxes.

Step 3: Get an EIN & Setup Your Business Bank Account or Separate Account

Even if you’re a gig worker, separating your personal and business finances is a smart move. 📌 Get an EIN (Employer Identification Number) – This is like a business Social Security Number. Apply for free at IRS.gov.

📌 Open a Business Bank Account – Keep your business earnings separate for easier accounting and tax filing.

📌 Get a Business Credit Card – Helps with tracking expenses and building business credit.

Step 4: Track Income & Expenses (Taxes Matter!)

Unlike employees, gig workers don’t have taxes withheld from their earnings. That means you must set aside money for taxes and track your expenses to reduce how much you owe. ✔ Use an accounting app (QuickBooks, Wave, or FreshBooks) to track earnings.

✔ Set aside 25-30% of income for taxes so you’re not surprised later.

✔ Keep receipts & track deductions like mileage, car maintenance, gas, business meals, marketing, and work supplies.

✔ File taxes quarterly (April, June, September, January) if you owe more than $1,000.

💡 Tip: Many gig workers overpay in taxes because they don’t track deductions properly!

Step 5: Protect Yourself & Your Business

Because gig workers and independent sellers operate without employer benefits, you need to secure your own protections.

✅ Get Business Insurance – Covers liability, accidents, and lost earnings.

✅ Set Up a Retirement Plan – Consider SEP-IRA or Solo 401(k) to save for the future.

✅ Get Health Insurance – Explore options through Healthcare.gov or gig worker groups.

✅ Create a Business Plan – Even a simple plan helps you stay focused on growth.

Step 6: Branding & Marketing (Stand Out & Make More Money!)

If you’re in direct sales, referral marketing, or MLM, marketing yourself properly helps grow your business faster.

📌 Create a Strong Online Presence – Use social media, a website, and Google Business Profile.

📌 Network & Build Relationships – Word-of-mouth referrals are gold in gig work.

📌 Differentiate Yourself – What makes your service or product unique? Highlight it!

📌 Use Automated Tools – Schedule social media posts, emails, and follow-ups to save time.

💡 Tip: Even gig workers in Uber, Lyft, or DoorDash can use branding (business cards, online profiles) to attract repeat customers!

Final Thoughts: Treat It Like a Business, Not a Hustle

If you’re working for Amazon Flex, Uber, Lyft, DoorDash, direct sales, referral marketing, or MLM, you’re already an entrepreneur—you just need to set yourself up properly. By structuring your business, tracking expenses, protecting yourself, and marketing smarter, you can increase profits and grow beyond a side hustle!

🚀 Need help setting up your business the right way? Drop your questions in the comments or message me!

📌 What’s your biggest challenge as a gig worker or independent contractor? Let’s talk!