It’s almost a new year, a time when lots of people decide to make significant changes, including to their jobs. If you’ve been toying with the idea of freelancing your reporting or starting your very own Substack, it might be time to consider starting a Limited Liability Corporation (LLC) for yourself and your work as you come into the new year.
Here’s why you should consider an LLC and the steps you can take to make it happen.
What is an LLC?
LLC is a legal status granted to businesses that allows more flexibility than a corporation, while at the same time providing more liability protection than a sole proprietorship. LLCs can be owned by more than one person, referred to as “members,” or be a single-member LLC.
For all practical purposes, since an LLC establishes the business as its own legal entity, you are not putting your personal assets at risk in case of lawsuits or other liabilities against your business. Even though your business is attached to you, having it treated as a separate entity ensures your house, cars and personal bank accounts won’t be considered assets of the company.
Additionally, establishing an LLC will give you an Employee ID Number (EIN) for filing taxes and allow you to open a business banking account and obtain a credit card to keep personal and business accounts separate.
Having an LLC can also come across as trustworthy and professional to clients. Nothing says I’m legit like having an LLC established for yourself.
If you think an LLC might be right for you, check out the article below for steps on getting started.
If your budget allows, an LLC attorney can give you legal guidance as you establish your LLC and work towards structuring and defining your business. The American Bar Association can also direct you toward some free legal help to get you started.
There are popular online platforms like LegalZoom and Rocket Lawyer that provide easy-to-understand answers to most of your LLC questions. You can even establish your LLC for a fee right on their sites.