The business structure you choose can have a big impact on your taxes. The most common business structures for freelancers and side-hustlers are sole proprietorship, limited liability company (LLC), and S corporation.

Sole proprietorship is the simplest business structure. Sole proprietors are responsible for all aspects of their business, including taxes. The profits and losses of the business are reported on the sole proprietor's personal income tax return.

Limited liability company (LLC) is a more complex business structure than a sole proprietorship. LLCs offer limited liability protection, which means that the owner's personal assets are protected from business debts and lawsuits. The profits and losses of an LLC are passed through to the owner's personal income tax return, unless the LLC elects to be taxed as an S corporation.

S corporation is a business structure that allows businesses to be taxed as pass-through entities. This means that the profits and losses of the business are passed through to the owners' personal income tax returns. S corporations must meet certain requirements to qualify, such as having no more than 100 shareholders.

The best business structure for you will depend on your individual circumstances. If you are just starting out, you may want to consider a sole proprietorship. As your business grows, you may want to consider converting to an LLC or S corporation.

It is important to consult with a tax advisor to determine the best business structure for you. A tax advisor can help you understand the tax implications of each business structure and choose the structure that will save you the most money on taxes.