Does a freelance writer need an llc?

15 October, 2021 Larisa Pingree 6

Answers (6):

    18 October, 2021

    It depends. If you are doing any type of freelance work for a company, such as writing articles or blogging for an organization, the answer is "yes", because they want to protect themselves from possible legal issues. If you're just writing short blog posts on your own site and don't have any previous freelance gigs, then I would say it's not necessary unless they require one. However if your future plans include taking on more work in the future and reporting them to the IRS (for tax purposes) than you may need an llc after all even though you didn't need it before.

    18 October, 2021

    An LLC helps by reducing the paperwork burden for freelance writers. The writer does not have to register as self-employed in their state, pay self-employment tax, or deal with records of work at the end of the year. Some freelancers might be good candidates for an LLC--a profession that requires a lot of interaction with clients and is likely to do high income, low expense jobs over time--such as architects or engineers. But most bloggers are not interested in taking this extra step because it simply does not help them.

    18 October, 2021

    It is not necessary to set up an LLC if the writer lives in one of the following US states: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware (with approval), District of Columbia (or DC), Florida (for partnerships only). As freelance writing is increasingly acknowledged as a profession with legitimate licensing qualifications and professional standards for business conduct and communications-a push which began in earnest in 2006 with the founding of The National Association of Professional Creative Writers-setting up an LLC will become increasingly important for many writers.

    18 October, 2021

    Without an LLC, the only legal protection you would have is through copyright law. Yes, without an LLC a freelance writer can be sued for third parties copying their work verbatim if they haven't properly obtained a copyright registration with the Copyright Office. All in all, It's completely common and appropriate for writers to operate as freelancers in order to reduce overhead costs and control their creative work. Yes, I agree that a freelance writer does not need an llc - but it would be wise for him or her to get one regardless just so they can enjoy some more legal protection during times of vulnerability such as when negotiating with publishing companies and large corporations etc.

    18 October, 2021

    No. If you're a freelance writer, I'm not sure there's any reason you need an LLC at all except as a way to protect your personal assets in case of lawsuits related to clients. I suppose one could argue that if you're doing outside contracting on top of the freelance work, then it might be worth getting some protection for that additional income (if your freelancing is your primary source of income). But companies like Upwork already offer commercial liability insurance specifically tailored for online contractors worthing up to $5M USD on coverage per incident plus up to $2 million in contents coverage.

    18 October, 2021

    Not everyone does, but it is highly recommended. It's important to register your company with the state in which you establish residency. If you're interested, here are some good articles detailing why it may be beneficial to do so:. Freelancers Need to Register Your LLC or You Might Be Out of Luck IRS Abroad Taxes for Foreign Nationals. Do I need an LLC? Why Consider Incorporating Your Business? 3 Benefits of Incorporating. The Advantages Of Forming A Corporation (And The Challenges) I can't afford an LLC, what should I do? "Not everyone needs one," said attorney Olga Rutterschmidt.