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1. Create an LLC (not sure in what state you are, but in florida it takes about 10 minutes, it's an online form) 2. With step 1, you can get a Business Checkin

1. Create an LLC (not sure in what state you are, but in florida it takes about 10 minutes, it's an online form) 2. With step 1, you can get a Business Checking account (some banks have free, I've used chase) 3. Get an account on freshbooks for your billing (invoicing, bookkeeping, accounting -- it will help when taxes comes around and in general to keep track of the financial health of your company) I highly recommend you do freelance with your LLC in case you start signing contracts and there is a dispute, they'll go after the LLC, not after your personal assets. Some things can be logged as business expenses, and some as personal expenses, just use common sense, and do talk to an accountant when you have to file taxes. The LLC itself does not pay taxes, you pay the taxes as income when the money goes from your LLC to you. About explains it better: "The tax implications of an LLC differ from those of corporations. LLCs use "pass-through taxation," which means the LLC does not pay taxes. Income from the business is instead passed down to the company's owners, who are called members in LLCs. They claim the profits or losses on their personal tax forms." http://sbinformation.about.com/od/ownership1/a/llctax.htm http://sbinformation.about.com/od/ownership1/a/llctax.htm IANAL

mburnett 16y ago
Be sure to setup that business bank account quickly. It can take a few weeks to get everything in order. I believe you can do it as long as you have your Employer Identification Number (EIN). https://sa1.www4.irs.gov/modiein/individual/index.jsp https://sa1.www4.irs.gov/modiein/individual/index.jsp This means you can do get the bank account and apply for the LLC in parallel.
- midnightmonster 16y ago
  In Florida for me, both the biz bank account and the llc were extremely fast. Llc was an online form with instant results, and biz bank account just required a visit to the actual office of my credit union. I needed the llc first in order to get the bank account in that name.
phsr 16y ago
Would you recommend creating an LLC for part time freelancing as well? I have a full time job, but planning to freelance to supplement income. I know, YANAL
jtbigwoo 16y ago
> I highly recommend you do freelance with your LLC in case you start signing contracts and there is a dispute, they'll go after the LLC, not after your personal assets. We should be careful not to overstate the protection a corporation gives. In a one-owner LLC or S-corporation, especially when the owner is the sole employee, you're still personally liable for most screw-ups and disputes. You made the mistake, signed the contract, etc. and the courts often find that both the company and the company's agent (you) are responsible. In addition, most banks will want the owner of a small company to personally guarantee any large loans. The big benefit to incorporating is that you can pay yourself a salary and lessen your tax liabilities.

mburnett 16y ago

Be sure to setup that business bank account quickly. It can take a few weeks to get everything in order. I believe you can do it as long as you have your Employer Identification Number (EIN). https://sa1.www4.irs.gov/modiein/individual/index.jsp https://sa1.www4.irs.gov/modiein/individual/index.jsp This means you can do get the bank account and apply for the LLC in parallel.

midnightmonster 16y ago
In Florida for me, both the biz bank account and the llc were extremely fast. Llc was an online form with instant results, and biz bank account just required a visit to the actual office of my credit union. I needed the llc first in order to get the bank account in that name.

phsr 16y ago

Would you recommend creating an LLC for part time freelancing as well? I have a full time job, but planning to freelance to supplement income. I know, YANAL

jtbigwoo 16y ago

> I highly recommend you do freelance with your LLC in case you start signing contracts and there is a dispute, they'll go after the LLC, not after your personal assets. We should be careful not to overstate the protection a corporation gives. In a one-owner LLC or S-corporation, especially when the owner is the sole employee, you're still personally liable for most screw-ups and disputes. You made the mistake, signed the contract, etc. and the courts often find that both the company and the company's agent (you) are responsible. In addition, most banks will want the owner of a small company to personally guarantee any large loans. The big benefit to incorporating is that you can pay yourself a salary and lessen your tax liabilities.