As an independent contractor, you operate your own business, providing services to clients without being an employee. This often means you're a sole proprietor by default. However, as your business grows or your risk exposure increases, you might wonder if forming a Limited Liability Company (LLC) is the right step. An LLC offers a distinct legal structure that can provide significant advantages over operating as a sole proprietor. It separates your personal assets from your business liabilities, a crucial distinction for any entrepreneur. This guide will delve into the specific reasons why an independent contractor might need an LLC, exploring the legal protections, tax implications, and operational benefits. We'll cover how an LLC works, what it costs to set one up in different states, and how Lovie can simplify the entire process for you, allowing you to focus on what you do best: serving your clients.
Start your formation with Lovie — $29/month, everything included.