“I only pay them from one state, my own.”

That is fine as long as they are regular employee who commute to the workplace in your state. Remote employees, however, generally create business nexus in the state where the remote employee lives.

I’m an amateur photographer as well. A common misconception among people who aren’t already into photography is that the type of camera will make the most difference in photo quality. That is often not the case. The knowledge of how to set up both the camera and the lighting is most important.

Product photography can be much more challenging than it would seem. Many pros who specialize in product images have specific kinds of lights and a special setup. You might want to ask for more detailed advice on r/photography.

My own opinion is that AI is overhyped. For day-to-day business operations, software which performs the same “miracles” attributed to AI has been in use for 3 decades. In the realm of reports, graphics, and entertainment, many contend that AI is simply a sophisticated method of copyright infringement. Several lawsuits have already been filed, and the courts will have to work out the issues.

Since this is a cleaning service rather than rental properties, I would make just one LLC.

“The lawyers and accountants…are really trying to overcomplicate things.”

Accountant here. Dissolving 2 MMLLCs is the same as dissolving 2 partnerships (assuming neither LLC elected to be taxed as a corporation) can be very complicated. There could be (depending on the circumstances) some very negative financial and tax consequences to you and/or your partner. This is not a DIY project.

Along the same lines, I recommend you also learn how to perform most medical procedures yourself. I have found that one should still use an MD for things like organ transplants (Sorry about that, Dad.). Smaller stuff like family appendectomies and self-colonoscopies, however, are great DIY projects. No need to break the bank on professional fees.

The SBA has a free primer on its website. It lists 10 steps, with each step broken down into various components. https://www.sba.gov/business-guide/10-steps-start-your-business

“After standard business deduction…”

There is no such thing as a standard business deduction. The standard deduction can be applied to ones AGI. but the OP emphasizes his hobby is only side work. He would not get a standard deduction for his hobby income and another for his other income.

“NOTE: I have no intention of filing business expenses for 2023 as it was more of a hobby than real side work”

Accountant here. You have received some very bad advice in this thread. Conversely, GoddessLeeLu gives an almost-totally correct answer.

An activity not entered into for profit must be reported using what are commonly called the hobby income rules. Gross profit (gross revenue less cost of goods sold) from the hobby is reported as other income on ones 1040. No other deductions are allowed. Consequently, you cannot deduct any costs relating to a vehicle, tools, office expenses, permits, or other expenses for 2023.

Since the activity was not entered into for profit, you are not liable for self-employment tax.