A record number of Americans left the traditional nine-to-five workforce this year, and as their side hustles transform into their primary jobs, many are wondering if they should take the next step in legitimizing their business by forming an LLC.
Images of white picket fences, packed lunches, and a sturdy briefcase dominate our perceptions of what work is supposed to look like, and has for the past seventy years.
The first step to forming a Single Member LLC (SMLLC) is to submit Articles of Organization. Once incorporated, the LLC can own property, be sued and sue others, manage bank accounts, borrow funds, and hire workers.
If you’re just starting out as a freelancer, don’t have the money to spend on incorporating, and are working with relatively low liability risk, then it might be more prudent not to form an LLC.
The administrative fees might also be a concern. What a freelancer also has to be weary of is how you will be seen in the eyes of the law after incorporating.