Question:

Does a freelance writer need an llc?

15 October, 2021 Jack Grisby 6

Answers (6):

  • AUTHOR: RUBI SCHILDGEN
    17 October, 2021

    There are a number of taxation and other legal considerations for all business types, and it is important that each individual evaluate these to determine which option best suits their needs. There are two main reasons to create an LLC: Corporation taxes and liability protection. A corporation's revenue is taxed three times: when earned, when distributed as far as profits or dividends, and when finally received by the shareholder in the form of a distribution.

  • AUTHOR: WALTER MCNAUGHT
    17 October, 2021

    A freelance writer does not always need an llc, but it is required to do business in some states. The primary reason for incorporating as a freelancer instead of just having your own work as a sole proprietorship has more to do with the legal responsibility that comes with doing business than anything else--especially when you are advertising or selling services. You want to be able pay your taxes and provide protection for yourself, so it's better to separate your personal assets from what you use for business purposes.

  • AUTHOR: ELIDA BYRON
    17 October, 2021

    It is in my opinion, in this day and age of increased litigation and financial risk for businesses, unwise not to. Should a freelance writer be aware of the benefits an LLC offers? Absolutely! Additionally he or she should be aware that many freelancers who do not operate through such structures tend to miss out on potential personal liability insurance coverage just when it is needed most. And they also miss out on the peace of mind gained from knowing that potentially catastrophic losses caused by themselves or within their own business will not come crashing down upon them personally.

  • AUTHOR: CHRISTOPHER KLEMP
    17 October, 2021

    Yes, definitely. An LLC protects your business from potential lawsuits if you are liable for damages to a client's property or injury to the client. Also, some states require freelance writers who sell products to obtain an LLC license in order to claim their work as legitimate. Why? States want to make sure that freelancers are real businesses, not just people looking for a hobby project that they can never get off the ground. Finally, if you happen to write for multiple publications and one drops out of your contract, an LLC will protect your other income sources while exposing them less legally with regards to liabilities of their contracts at the time.

  • AUTHOR: NANCIE SCHEWE
    17 October, 2021

    Working as a freelance writer has a lot of pros, but the cons make it a tough choice. That's why many people choose to start an llc for their writing business. In order to be successful as a professional freelancer, you need to look out for all aspects of your life including your taxes and that means understanding the basics of llcs. With publishing opportunities on the rise-and salaries potentially jumping up too-working as an indie should at least be considered! Information needed: What is an LLC? How does this protect freelancers? Why should I form my own business/LLC? The benefits. Hello!

  • AUTHOR: TYISHA MAYORAL
    17 October, 2021

    A freelance writer does not need an LLC. While it may be difficult to prove that one is really a freelance writer if they're working out of their attic, the IRS has published an article entitled "Freelance Writer" that includes detailed tax information for freelancers. More specifically, it explains that "You are presumed to be in the trade or business of being a writer if you make more than half your income during each year from writing." If this applies to you (significantly more than 50%) then you'll need to file 1099-MISC forms. If less than 50% of your income comes from writing, then no 1099-MISC filing is required.