Self Employed vs LLC

[joshuaandbonnie]

Hello,

I have been self employed for the past 3 years providing customer service for an online company. I have recently taken on another client to do their online customer support as well and I have been considering if I should registered for an LLC or not. Would registering for an LLC help when it comes to paying taxes or would the taxes be the same? I have been trying to research this and find some guidance. Hoping turbotax can point me in the right direction.

[Anonymous_]

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@joshuaandbonnie wrote:

Would registering for an LLC help when it comes to paying taxes or would the taxes be the same? 

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They would essentially be the same since a single-member LLC is treated as a disregarded entity for federal income tax purposes; you would still file as a sole proprietor on Schedule C for your business, unless you elected to be treated as a corporation (S or C) for federal tax purposes.

Regardless, before making any potentially irrevocable moves, I would strongly suggest consulting with both legal and tax professionals with respect to forming any type of business entity.