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How relevant is this to a single person wanting a corporate front to make small amounts of side money from a website or app? Is an in-state LLC more preferable in that situation? Is any type of incorporation even necessary?

You should be fine just forming a disregarded-entity LLC in your state.

There's no reason to do it in Delaware, except want to part with a lot more of your money. Even if you form the LLC in Delaware, you will have to register it as a foreign entity in your home state, so you're only doubling your paperwork and annual costs.

It's worth chatting with an accountant about this. Many of them offer a free 30- or 60-minute consultation to new clients (or potential clients).

For your case incorporation is not necessary. Being in a single-member LLC doesn't necessarily limit your liability all that much. Declare your earnings on your tax return and pay state and federal self-employment taxes. Simple.

I used a sole proprietorship until the money started getting more substantial; that may not be a good idea if your business has large risks though.

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