As a freelancer or sole proprietor, you're likely operating as an independent contractor. This is the default status for many self-employed individuals. However, as your business grows or your risk exposure increases, you might start considering whether to formally establish a Limited Liability Company (LLC). The decision between remaining an independent contractor and forming an LLC involves understanding legal protections, tax implications, administrative requirements, and overall business strategy. This guide will break down the core differences between operating as an independent contractor and forming an LLC. We'll explore the advantages and disadvantages of each, helping you determine which structure best suits your current needs and future aspirations. Whether you're just starting out or looking to scale, making an informed decision about your business structure is crucial for long-term success and peace of mind.
Start your formation with Lovie — $29/month, everything included.