Freelancers: Sole proprietorship vs LLC vs S Corp?

almost 4 years ago from Oz Chen, UX Designer. Writer & Publisher @ UXBeginner.com

  • Jon MyersJon Myers, almost 4 years ago

    When I lived in the US, I found the Freelancer’s Union very useful and I was a member. They may be able to help you evaluate some of your questions based on your specific situation.

    https://www.freelancersunion.org/

    In general, it’s better to be incorporated as a business entity and run your business through that entity. In some cases, depending on the customer, it’s required.

    If you're a single member of your company, an S-Corp (again, case dependent) is unlikely the best type of entity. An LLC formed in the right state may make more sense.

    A Wyoming LLC offers independents and freelancers some of the best options.

    It’s a pro-business state, there are not a lot of crazy fees and red tape. Your company file is online and accessible.

    They are also fast to set up. Usually a few days.

    In terms of asset protection, their structure gives your assets more protection.

    They offer single member LLCs specific rights and legal protections as well.

    Finally, there is no sales tax or income tax in Wyoming.

    If you Google around, you will find companies that specialize in just Wyoming LLC formation with boiler plate operating agreements, etc.,

    Good luck.

    1 point