4 ms·
> 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 persona
by 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.