Should I form an LLC?
This is a question that comes across every freelancers mind at some stage. It is best to understand why forming a LLC is important when you decide to take the plunge and run your own business.
It is recommended to run your business as an LLC especially if you will be the Sole Owner, your ownership in the LLC will not be seen as security and you don't plan on taking investments. If you are freelancing for more that 25% of your time then it is also suggested to form a LLC.
Full time freelancing and forming an LLC allows you to take advantage of the protections and tax advantages that are available to you. These come when you treat yourself as a viable business.
Forming an LLC means that you are protected when it comes to your personal assets should your business owe money. If your business gets sued, owes money, fails to pay bills or any other obligations your personal assets cannot be touched.