Unpacking the future of small business.

Small business operations have evolved significantly over the past five years. From the rise of AI and automation to the vast expansion of e-commerce and digital payments, there have been seismic shifts in how small businesses run. Tack on the evolving trade environment, with its potential impacts on tariffs and supply chains, and things become even more complex.

These changes impact many areas of a business, especially finances. The US Treasury Department found that the majority of small business owners have reported financial hardship due to higher prices on goods, services, and wages.

An unpredictable economic landscape has been a major concern for small business owners for years. According to the US Chamber of Commerce’s 2025 Small Business Update, inflation and regulatory uncertainty are top worries for business owners across the country.

Small businesses are grappling with rising prices and high interest rates that impact borrowing costs and access to capital. To adapt, businesses are implementing an array of strategies. Research has found the top actions growing businesses are taking include bolstering cash buffers amid elevated uncertainty and paying down existing debt.

Resilience, however, also continues to be a cornerstone for small business leaders in 2025.  41% of small businesses nationally identify as being in “growth mode.”

Many small businesses find that flexibility and speed play a huge role in navigating ever-changing environments. 

Do you need an LLC?

 Why get one? It offers some legal protections for your personal assets from business liabilities.

Despite the slew of courses promising to walk you through the complicated process, or companies offering to do it all for you (for a fee), you can do it yourself. So, based on my own experience of going legit while spending the least amount of money possible, here’s my guide—you can use the savings to pay your friend for a cool logo.

How to get started

You can usually register an LLC through your Secretary of State’s website for a fee (in most states, it’s under $200).

To file, you’ll need to choose a registered agent, which is the official person or entity that accepts your mail (especially any legal docs), with a physical address that will be published online. It varies a little by state, but you have a few options:

• Be your own agent, list your home address, and hope you never have a disgruntled customer.
• Be your own agent and list your office, studio, or a room in a big, gorgeous former licorice factory that you use to build elaborate cardboard props as your address.
• You can also pay a group like Northwest Registered Agent $125 a year to be your agent.

Other resources to help run your side biz

I applied for an employer identification number (EIN), which is a federal tax ID for businesses, so I don’t have to list my SSN on every form. It’s free.

You may also want some business insurance. I have a pretty standard business owner’s policy that costs $100/month and will pay for a new sewing machine if someone robs me.

If you don’t already, start tracking your spending (I just use a Google Sheet; no need to be fancy!) so you can write all of that off via a Schedule C on next year’s taxes. To learn more, I took an artist-specific tax workshop from Triangle Art Works that cost me $27 but saved me way more.

But my best investment…was joining my local chamber of commerce. They offer a discount for independent artists (who pay $100/year) and host 1 billion actually good mixers and events full of business owners who know way more than I do about navigating local and state regulations.