Women entrepreneurs are redefining success, using side hustles not just to earn extra income, but to build financial independence and turn their passions into thriving businesses. Whether you’re freelancing, selling handmade crafts, or driving for a rideshare company, every hustle is a step toward greater freedom and opportunity. But with growth comes responsibility—especially when it comes to taxes. In this article, we’ll highlight five top side hustles for women and break down what you need to know about taxes, including how different business structures can impact your financial future.

1. Freelance Writing & Blogging

If you love writing, freelance writing or blogging can be a profitable way to make money on your own schedule. Writers can create content for businesses, websites, and publications or even monetize their own blogs through affiliate marketing and sponsorships.

Tax Considerations:

• Most freelance writers are classified as 1099 independent contractors, meaning they are responsible for self-employment taxes.
• Keeping track of expenses like home office costs, software subscriptions, and internet bills can help reduce taxable income.
• Writers and bloggers who work with international clients may need to navigate tax treaties to avoid double taxation. If you’re earning from foreign sources, check whether you need to file IRS Form 1116 to claim a foreign tax credit.

If blogging becomes a full-time business, forming an LLC or S-Corp could provide tax benefits and legal protection.

2. Graphic Design Services

With the increasing demand for digital content, freelance graphic design is a lucrative side hustle. Designers can work on logos, branding materials, social media graphics, and more.

Tax Considerations:

• Graphic designers working with multiple clients are usually considered independent contractors and must pay estimated quarterly taxes.
• Equipment like a laptop, design software, and digital assets may be tax-deductible.
• If you license or resell digital assets, you may need to account for sales tax depending on your state’s laws.
• If you use your car for both personal and business purposes, you might qualify for depreciation deductions 

If growing into a full agency, switching to an S-Corp could allow for salary distributions and tax savings.

3. Photography Services

Turning a passion for photography into a side business can be fulfilling and profitable. From weddings to family portraits, photographers can book gigs based on their schedule.

Tax Considerations:

• Most photographers operate as sole proprietors or LLCs.
• Equipment like cameras, lenses, lighting, and editing software can be written off as business expenses.
• If working with a second shooter or assistant, payroll taxes may apply depending on the business structure.
• Photographers who sell prints or digital downloads may be required to collect and remit sales tax. Be sure to check your state’s sales tax laws, as digital products are taxed differently in different states

4. Virtual Assistance

Virtual assistants (VAs) provide administrative, marketing, and operational support to businesses remotely. This flexible job is perfect for women looking to earn extra income while working from home.

Tax Considerations:

• Most VAs work as independent contractors (1099 workers), but those with steady clients may consider forming an LLC.
• Home office deductions and productivity tools can be claimed as business expenses.
• If hiring subcontractors, tax withholding and reporting may be required.
• If you work with clients in different states, you may need to file taxes in multiple states. Some states require nonresident tax filings if a certain income threshold is met.

5. Medical Delivery Services

With the rise of telehealth and prescription delivery, medical couriers are in high demand. These drivers transport medications, lab samples, and medical supplies to hospitals, clinics, and patients. 

Tax Considerations:

• Delivery drivers are classified as independent contractors, meaning they must pay self-employment taxes.
• Mileage, car maintenance, and gas expenses may be deducted to lower taxable income
• Keeping a mileage log is crucial to maximizing deductions.

When to Consult a Tax Professional

As your side hustle grows, tax planning becomes essential. Consider consulting a tax planner or CPA if:

• You’re unsure how to report income and deductions.
• You’re making enough to consider changing your business structure.
• You want to optimize your tax strategy and minimize liability.

Side hustles can be a powerful tool for financial independence, but understanding tax responsibilities is crucial. Whether you’re freelancing, designing, or driving for a rideshare service, planning ahead for taxes will help you avoid surprises.

Is your side hustle growing into a full time business? 

Contact Real CFO today for a free consultation and learn how to optimize your tax strategy