Turning your side hustle into an Arizona LLC in 2026 can unlock significant tax advantages. But navigating the complexities of federal and Arizona state tax laws can be daunting. This guide simplifies your tax obligations, helps you maximize deductions, and avoid common pitfalls. Lovie can further streamline this process by automating your formation and compliance needs.
As a single-member LLC in Arizona, your business income is typically treated as pass-through income. This means profits are taxed at your individual income tax rate. You'll report your business income and expenses on Schedule C of your Form 1040. Alternatively, you can elect to have your LLC taxed as an S-Corp or C-Corp, which may offer different tax benefits depending on your specific situation. Consult with a tax professional to determine the most advantageous structure for your side hustle.
Start your formation with Lovie — $20/month, everything included.