Looking to change my soul prop hobby business to a LLC. Legally what needs to be done they are two different categories technically.

I assume you mean you are a sole proprietor, not that you want to change your soul. As far as I'm aware, the latter can't be done. But if you want to become an LLC the procedure is actually very simple and inexpensive. Depending on which state you live in there will be slightly different requirements. You can do it yourself for a filing fee of approximately $250 in New York if you can prepare all the paperwork yourself (Articles of Incorporation,Operating Agreement, Corporate Resolution to open bank account, Minutes of the first board of directors' meeting, etc.). Once you file with the Secretary of State and pay the fee, and assuming the name you chose was available (that's a free search at the NYS Dept. of Corporations) you will receive a receipt and a state form certifying that you now are the proud owner of a new LLC. Then you can get a Federal tax ID online for free.

I have formed over 20 distinct entities in NY and Delaware, from C corporations to S corporations and LLCs. Make your life easy and hire a firm that specializes in this. They do it every day, they have the forms, they can transmit electronically to the state (you can't without an account). For an additional $150 over the $250 in State fees they will do it all for you and send you a complete package with the filing receipt, Articles of Incorporation, Operating Agreement and a corporate resolution so you can open a bank account. Don't spend the extra $50 for a Federal tax ID. Do it yourself online in 10 minutes. All with no headaches (which can be large if you do it yourself and screw up or forget a document. Just Google "form an LLC in my state" and a dozen of these firms will pop up. Don't go for the $49 special because you will get only the barest bones and won't be able to open a bank account. Around $150 plus State fees should do it. About $400 in NYS. You don't need a Registered Agent in NY, (you can be your own agent) but other states require a registered agent, so add another $120 a year every year to hire one. Don't use an attorney, they are expensive. If you wanted your LLC to be owned by a foreign corporation which is owned by another foreign trust then use an attorney and be prepared to spend $25,000. You have the option of filing tax returns as either a C or an S corporation. For small businesses which don't intend on having over 100 shareholders, or going public, file as an S. It's known as a "pass through" entity because profits and losses go directly onto your tax return. A C corporation is taxed twice, and any losses it accumulates are capital losses, which can only be used against capital gains. Otherwise you get to deduct $3000 a year of your losses on your personal return. Not a great deal. But check with your accountant. Hope that helps.