<prompt> Human: I have a regular 9-5 job and make art on the side. Last year I hit the big time at least thats what it felt like and sold a painting for more than 1k. I sold it to a company - they reported in their taxes and as my tax guy said, it screwed everything up. If I have an opportunity to sell again, is there anything I should do differently? Do I need to set up an LLC for selling the occasional artwork?  <response>: Yes, get a different tax guy. What did he mean, it screwed it up? Made him file a few more forms, yes. It didnt cost you that much more in taxes though. A llc wont change what you pay in taxes.Did you deduct your expenses in making that art? 