LLC or S Corp Formation

PS96 — Wed, 30 Aug 2023 18:44:39 GMT

When performing freelance work, when should I apply for an LLC or S. Corp? Do I need to be making a certain income via freelance to make this "worth it" so to speak?

Re: LLC or S Corp Formation

JBedford — Wed, 30 Aug 2023 18:52:43 GMT

Hi, @PS96 , thanks for the question! But unfortunately, it is a outside of our scope, as we cannot provide advice on business entity formation.

I can say that an LLC is generally considered a "disregarded entity" for tax purposes, so there would likely be no tax effect to forming one.

As to S corporations, they have to file their own business tax return and have many other requirements, including the necessity of paying reasonable wages to owners who work in the business. Therefore, it adds a great deal of complexity to your taxes. I would suggest consulting with a local or online accountant or tax attorney who advises in these matters.

Hope this helps, please let me know if not!

topic LLC or S Corp Formation in Self employed

LLC or S Corp Formation

Re: LLC or S Corp Formation