[Question] Does an LLC matter or is it useful?

[JetBlack101]

Hey Blackhaters!!!

So, when I was working in the oil and gas industry everyone who was a freelancer had an LLC set up to lower their taxes and protect them against legal claims.

Now I am in the tech industry but not sure if people that are freelancers want or need an LLC.

Obvisouly non-US people are under a different set of rules and regs.

For those US people, does an LLC seem useful or something that you would want?
Other thoughts?


Thanks,
JetBlack101



NOTE: I am not selling a service. I am not giving anything for free. I am not offering to do anything for anyone at any time related to the content of this post. I am just curious about if people stay off the grid or would actually use the legal protection of an LLC. Mods if this is in the wrong place I do apologize, I had a hard time figuring out where to post it.

 

[JetBlack101]

Some benefits of a Limited Liability Company (LLC):
1. Privacy
2. Legal protection
3. Can be just a single person and set up in about a day
4. You are taxed only on Profits, not revenue.

 

[Rj268]

If your running a business you are far better off as an LLC or S-Corp. There are tax benefits and a layer of protection from lawsuits against you personally, in most cases.

It would be best to talk to an accountant for the exact details and benefits.

 

[Poople]

S-Corp is what I did. It's just a hell of a lot easier when tax time rolls around. It's essentially the same, I just don't have to keep track of all my damn receipts.

 

[James2774]

Set up as an LLC
There are benefits beyond tax breaks/work arounds

You will also find it useful to have an LLC already running should you decide to expand into other services/business one day.

Also with an LLC you can start to build business credit so you can qualify for great finance products in the future (needs to be done specifically, most people/businesses are not building business credit even if they have LLCs or Corps)

 

[JetBlack101]

you can start to build business credit

Agreed. Most of my friends back then had business credit cards that they just got for no reason besides they had an LLC.

 

[James2774]

Agreed. Most of my friends back then had business credit cards that they just got for no reason besides they had an LLC.

Just make sure the business credit card reports to the Business credit bureaus.
Most actually report to personal credit, for example Capital One Business credit cards do not build business credit.
There are select cards to get that only report to business, some report to personal and credit.

Wells Fargo IIRC, CHASE Ink, easily googleable info though.

They are great for start ups if you work towards a 700+ FICO you can get 80k plus worth of cards lol