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In some states, all you need is a federal EIN, which you can get free on the IRS site in about five minutes. https://www.irs.gov/businesses/small-businesses-se

• throwaway0a5e 6y ago
  Putting hurdles up (like $500 LLC fees) in front of the various things that "legit businesses do" is a form of regulatory capture. Basically the goal is to force businesses to choose between heavily buying into the status quo or giving government power of arbitrary enforcement over them. The licensed plumbers don't want all the journeymen who haven't spent years getting a license but can install a toilet just as well undercutting them and stealing their gravy business. By imposing regulatory hurdles at every step of the way you keep those "I'm not quite big enough to go 100% above the table" businesses under the table you keep them on the down low and you keep them from affecting regulatory change. By the time those journeymen plumbers have licenses of their own and can be 100% above the table they feel entitled to the gravy and don't want to change anything. (I only picked plumbing because it's a good example in my state, there's plenty of others).