In the corporate world, that's known as "the cost of doing business". As long as the profit exceeds the fine, we're good. If the profits exceed the threshold, it would get claimed come tax time as "additional income". There'd be no audit because local PD doesn't report to the IRS.
If the profit IS good enough, I'd totally pay the fee to register as an LLC so I can do the "fancy accounting" and afford myself all the tax and corporate bonuses that come along with it.
Had I thought of it 5 years ago, I could have used the LLC to apply and get me one of those fancy COVID loans (that didn't need to be paid back). Though, I'll admit the money would have been invested in dividend bearing stocks and actually paid back at the end of the term; minus the profit I made off the money of course.
That's the problem, 4 stars. If she was a 5 star woman, this wouldn't of happened.