Yes, definitely create an LLC (pass-through business). A business bank account (Azlo.com) helps keep things organized but isn't required. You take "owner draw"

Yes, definitely create an LLC (pass-through business). A business bank account (Azlo.com) helps keep things organized but isn't required. You take "owner draw" by transferring money to your personal bank account. Pay all expenses through your business bank account and claim them as expenses to reduce your taxable income. If your expenses are high, this could save you a lot of money on taxes. You can even amend past 2 years of taxes to retroactively claim these expenses. Some things to watch out for with an LLC: * Your taxes are no longer due in April. With an LLC you'll get a late payment fee if you don't pay "estimated" taxes by Jan 15 each year. * You're taxed for any LLC income regardless if it's kept in your business bank account or not. Your business income is taxed on your personal taxes (pass-through business) unless you create a C-Corp, which means filing two taxes each year. * You can't do payroll, take salary, nor get health insurance through an LLC. For that you need to classify your LLC as an S-Corp within ~75 days after LLC created. * You have to pay a yearly business tax, sometimes hundreds of dollars depending on your state. Therefore, make sure you dissolve your LLC if you stop contracting. I recommend Stripe Atlas for creating an LLC.