The fastest way to lose your liability protection is "commingling" funds. These tools separate your side hustle income from your personal bills.
Budgeting (like YNAB) is personal. It’s about planning how to spend your paycheck on groceries and rent.
Accounting is for business. It tracks revenue, deductible expenses, and taxes. If you are freelancing, driving for Uber, or selling on Etsy, you are a business.
If you pay for business expenses with a personal card, or buy groceries with business cash, you are "piercing the corporate veil." In a lawsuit or bankruptcy, this means a judge can seize your personal assets even if you have an LLC. Keep them separate.
$0/mo
Free Forever (Really)
The only truly free accounting software worth using. It offers unlimited invoicing and expense tracking. Perfect for bootstrappers who need to save every penny.
$15/mo
For Solopreneur Plan
The industry standard. If you plan to scale, start here. It integrates seamlessly with TurboTax, making your annual tax filing almost automatic.
$19/mo
30-Day Free Trial
Built for designers, writers, and consultants. The invoicing features are beautiful and help you look professional to clients. Great time-tracking tools.
When you are an employee, your boss withholds taxes for you. When you are a freelancer, you are the boss. The IRS expects you to pay taxes four times a year (Quarterly Estimated Taxes).
If you wait until April 15th to pay everything, you will get hit with an "Underpayment Penalty."
This is why we love QuickBooks Solopreneur. It connects to your bank, sees your income, and automatically calculates: "You owe the IRS $450 this quarter." It removes the guesswork.
Use Wave Apps. It handles the basics perfectly and keeps you legal without a monthly fee.
Use QuickBooks. The tax estimation feature is worth the monthly cost for the peace of mind.
Use FreshBooks. The invoices look incredibly professional and help you justify higher rates.
Software is step one. Here is what else you need to be legit.