It varies state to state as to the actual process but I did this last year. 2 reasons to file with your state: 1) tax law requires that you state your income. 2) form an LLC and make sure that if you screw something up, they can t sue you personally.In Oregon, (and in many states) it s all done online. It took about 10 minutes and cost $50 per year to set up an LLC with a tax ID. Don t pay one of those companies to set up your documentation for you- it s a waste of money. It s a good idea to file the docs even though as a small side business, you don t NEED to. It makes you look more legit, provides a tax shelter, and provides a legal haven if something goes bad.
do it.
