72% of US Workers Now Have Side Hustles, Exposing Personal Assets to Legal Risks

LegalMatch Warns 'Majority Workforce' of Hidden Liabilities in Unprotected Side Hustles

Published on Feb. 27, 2026

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A new report from MyPerfectResume found that 72% of US workers now have a secondary income source, up from 71% in 2025. This 'side hustle' economy has grown from a fun fact to a national economic pillar, but many workers operating as unprotected sole proprietorships face legal dangers around asset protection, taxes, and contracts. LegalMatch is alerting this 'new majority workforce' to the importance of formalizing their side businesses with an LLC or other legal structure to safeguard personal assets.

Why it matters

The rise of the side hustle economy has left millions of Americans exposed to legal risks that could threaten their personal finances and savings if not properly addressed. As side hustles become the 'new American standard,' there is a growing need for workers to understand the legal protections and requirements around operating a business, even a small one.

The details

According to LegalMatch, the three main legal 'danger zones' for side hustlers in 2026 are: 1) Asset protection - without an LLC, personal assets like homes and bank accounts can be seized to pay business debts; 2) Tax laws - as tax laws tighten, side hustlers need to understand 'nexus' requirements for being taxed in multiple states; and 3) Contractual protections - generic online templates may not guarantee payment or prevent 'scope creep' for side gig workers.

  • The 2026 State of Secondary Income Report from MyPerfectResume found that 72 percent of workers have secondary income, an increase from 71 percent in 2025.

The players

LegalMatch

The nation's oldest and largest online legal lead-generation service, headquartered in Reno, Nevada.

Ken LaMance

LegalMatch's General Counsel, who warns that 'failing to formalize a business with an attorney can be like building a house on someone else's land.'

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What they’re saying

“Failing to formalize a business with an attorney can be like building a house on someone else's land. Without an LLC or proper legal structure, one client dispute or a single 'slip and fall' could wipe out your primary paycheck and your personal savings. It is imperative that a business owner, no matter how small the business, has legal review to ensure legal protections and longevity.”

— Ken LaMance, General Counsel, LegalMatch

What’s next

The last thing anyone needs when they are hustling to make ends meet or expand financially is legal trouble. Business owners and 'side hustlers' have resources available to them online, such as LegalMatch.com, the nation's most-trusted attorney-client matching service.

The takeaway

As the side hustle economy continues to grow, becoming the 'new American standard,' it is crucial for workers to formalize their small businesses with proper legal structures like LLCs to protect their personal assets and finances. Failing to do so leaves them exposed to significant legal risks that could jeopardize their primary income and savings.