How to Start a Side Hustle (2026)

What Is a Side Hustle?

A side hustle is a second income outside of regular employment. This means you set your own hours, price, and decide how big it grows. That’s different from picking up extra shifts at work, where someone else makes all of those decisions for you.

More people are now having side hustles than you might think. A 2025 LendingTree survey found that 38% of Americans have a side hustle, and 61% of those people say they couldn’t cover their bills without it. Everything costs more now than it did a few years ago, and a single paycheck no longer stretches as far as it used to for most families.

Assess Your Skills and Passions

Write down what people already ask you for help with, or any hobbies and passions you have that could lead to an extra income:

• Neighbors call you when something needs fixing
• You make things, like candles, jewelry, or woodwork
• You walk neighbors’ dogs when they’re away
• Colleagues ask you to proofread their writing or polish their resume
• People ask your advice on fitness, food, relationships, or money
• Friends ask you for help with planning or organizing events

Then think about how your ideas might pay. For example, walking dogs pays you per walk. An ebook or an online course takes time to create once, but then keeps selling without you doing anything else, providing passive income. Most side hustles sit somewhere between the two.

Research the Market and Your Competition

Before committing to an idea for your side hustle, spend some time looking at who else is already doing what you want to do. Five dog walkers in your neighborhood may just be enough. If a market is already packed and everybody is fighting for business, be careful of investing time and money into a business that might never go anywhere.

And read other businesses’ Google reviews. What are people frustrated about? Slow replies, no-shows, unclear pricing, or sloppy finishes? That could be your chance. You might not have to build something entirely different, but you could do it better or more reliably than others.

Write a Business Plan and Set Your Pricing

You don’t necessarily need a formal document for a first business plan. Write down four things on a piece of paper: what you’re selling, who you’re selling it to, what you’ll charge, and how you’ll find your first customers. It’s simple, but it’s all you need to get started.

On pricing, work out your break-even point first. Say your supplies and software cost you $200 a month, and you have 20 hours available to work. That means you need to earn at least $10 an hour just to cover your costs before you make any profit. That number is your floor, because you’re losing money if you charge less.

And don’t forget that the government wants a cut of your earnings, too. According to the IRS, self-employment income is taxed at 15.3% for Social Security and Medicare alone, before income tax comes into the picture. Get into the habit of setting aside 25% to 30% of your earnings, and make sure to pay estimated quarterly taxes to avoid getting hit by a big bill once a year.

For tax reasons and your own organization, make sure to invoice properly from the start. Whether you need a freelance or consulting invoice, doing it properly means payments are documented and professional from day one.

Estimate Startup Costs and Secure Funding

Start with as little as possible. Service-based side hustles, like dog-walking or house-sitting, cost almost nothing to set up. If you do need funding for your side hustle, keep it simple.

Ask family or friends before you approach a bank. A small personal loan is an option, but be realistic about how long it will take to pay it back. The Small Business Administration (SBA) also has a list of loan options worth looking at.

It’s a good idea to open a bank account just for the business. While it’s not required, when tax time comes, you need to know exactly what came in and what went out. Keeping things separate rather than mixing personal and business money will make this faster and easier.

Register Your Business and Get Licenses

Common options to register your business are a sole proprietorship and an LLC. A sole proprietorship means you and the business are the same legal entity, which leaves your savings and personal assets exposed. An LLC puts a legal wall between you and the business, so if someone sues the business, they can’t go after your personal assets.

Depending on what you do, you may also need a license or permit before you can legally charge for your services. For example, a notary needs a state commission, and a contractor typically requires a trade license. And for some types of work, having clients sign a general release of liability before you start is a simple precaution that can save you a serious headache later.

Don’t forget to get your paperwork in order before you take on your first paying client. An independent contractor agreement sets out exactly what you’re doing, for whom, and what you’re getting paid. And a service agreement does the same for ongoing work.

Launch Small and Test Your Idea

Start with the most stripped-down version of what you’re offering. Test one service with one price. Consider offering it to a few people you trust at a discount or for free, in exchange for feedback and reviews you can show potential customers. Genuine feedback can be helpful for tweaking and refining your side hustle idea and offering.

Market and Grow Your Side Business

Set up a free Google Business Profile before anything else. It costs nothing and puts you in front of people in your area searching for what you do. Then, pick one or two social media platforms where your customers spend time. For local and home services, Nextdoor and Facebook groups can work better than Instagram. For professional services, LinkedIn is vital.

Work one platform consistently before you add another, and show up regularly rather than posting sporadically across four platforms. After every job, ask for reviews and referrals, which are essential for growing your side hustle.

Profitable Side Hustle Ideas to Consider

Here are five realistic options for side hustles you could get started on today:

• Mobile Detailing: Clean cars at the client’s home or office. Use a cleaning service agreement and a cleaning invoice. Startup cost: $75 to $150 for supplies.
• Handyman Services: Small repairs and yard work for homeowners. Startup costs are minimal if you already own the tools required.
• Resume Writing: Help people update their resumes when changing jobs. Startup cost: $0 unless you have to purchase specific software.
• Mobile Notary: Get commissioned in your state and travel to clients for document signings. Startup cost: $50 to $200.

House Sitting or Dog Walking: Look after clients’ homes or their pets. Have clients sign an activity waiver and release before you start. Startup cost: $0 (but consider basic pet sitter insurance at about $100 to $200 a year).