Working freelance can afford you added freedom, flexibility, and control over your career. Setting up an LLC (limited liability company) provides protection and peace of mind while enhancing your professional reputation and clientele. Recently, more companies are hiring freelancers who have an LLC set up rather than hiring new employees. Below, We The People of NY — a legal service provider in New York City — shares several key benefits of incorporating your business as a freelancer.
3 Benefits of Setting Up an LLC
1. Limited Liability
Incorporating your business as a limited liability company reduces your responsibility in case of a lawsuit, effectively shielding your personal assets from potential legal matters. Should you run into legal trouble without an LLC in place, your car, home, and investment portfolio may be used to satisfy a judgment in the plaintiff’s favor.
Becoming an LLC can attract new clientele by improving your professional reputation. Having the letters “LLC” next to your company name indicates you are serious about your business and are committed to providing clients with quality service. Additionally, many companies are using freelancers that operate under an LLC rather than hiring new employees.
3. Tax Benefits
Setting up an LLC provides you with a number of tax benefits, including simplified filings, the ability to select how you are taxed, larger contribution limits, and the option to lease personal assets to your corporation. The exact benefits will ultimately depend on your individual needs, goals, and business structure.
If you’re thinking about setting up an LLC, We The People of NY is the place to turn. Locally owned and operated with more than 12 years of experience, their affordable, high-quality legal service can assist you with a variety of matters, including divorce, bankruptcy, wills, power of attorney, and incorporating your company. Learn more about their business services online, or call (212) 633-2200 to speak with one of their knowledgeable and friendly people..