freelancers union
TAX RESOURCES
A GUIDE TO LLC’S AND
INCORPORATING
WHY SHOULD I INCORPORATE AS A FREELANCER?
If you’re not incorporated, you are technically a sole
proprietor. In this case, your home, car, savings, and
other personal assets are fair game if you’re sued or
end up in debt. By incorporating, you will separate your
personal life from your professional life. Incorporating
builds a virtual wall around your personal assets,
meaning the most you could lose is the money you
choose to invest in your business.
ARE THERE DIFFERENT WAYS TO DO IT?
The most popular ways to incorporate are by forming
an LLC (Limited Liability Company), C Corporation,
or S Corporation. In most cases, forming an LLC is
the simplest, most affordable option for a freelancer.
Down the road, if your business expands or you’re
interested in offering stock, it could be worth
considering a C Corp, S Corp, or even non-profit.
IS THERE AN IDEAL TIME TO PULL THE TRIGGER?
If you’re already in full operation, you may prefer to
incorporate before December 31 to minimize personal
asset exposure and to maximize self-employment tax
savings. If you’re not yet active, you could benefit from
waiting until January to avoid the costs of submitting
a prior year tax return for an inactive company.
WITH
WHAT ARE THE PROS AND CONS?
PROS
• Complete legal protection for your personal assets,
like your home, car, and savings.
• Potential tax benefits, depending on how you
incorporate.
• If your freelance job grows to include multiple team
members, an LLC or Corporation will remain in full
force regardless of which owners come and go.
• Adding “LLC” or “INC” to your business name helps
your business seem more established and adds
credibility.
CONS
Like most things of value, incorporating takes time and
money. And that’s where incorporate.com comes in.
Our experts are here to ensure the process takes as little
of your time and effort as possible, and to provide you
with an excellent value along the way.
WHAT’S THE PROCESS LIKE?
First, you select a name, the state in which you want
to operate, a business structure (such as an LLC), and
a Registered Agent. Next, you’ll file your application
with the state government, and wait for your certificate
of incorporation. And of course, incorporate.com
is ready to answer any questions, serve as your
Registered Agent, and handle all the filing, red tape,
and heavy lifting.