Got a question on Twitter this week.
“Is the LLC still worth getting?”
It’s a good question. Especially for those who are a one-man/woman business and don’t really need to worry about paying anyone but themselves. But the fact is, there are great reasons to make it official for your business by filing for a corporation or LLC. So today, we discuss.
1) It’s not just for the sake of being professional to others, but to yourself as well.
It might take you some time when you first go off on your own to decide what you want your business to focus on and the type of clients you want, but as soon as you know you should get that business filed with your govenment. It does wonders for mindset and productivity of how you then treat that business, rather than the hobby it has been up until this point. You’d be surprised the people who have no other revenue streams, but their freelance business still gets treated like a hobby. You can’t afford to lose out on the success that you deserve by having the wrong mindset and proper invitation to your clients: which is what you get in an official name and that document from your state.
2) It’s actually not as expensive as you might think and also really doesn’t change that much.
I was afraid to take that first step because of how my tax filing would change and how much the actual cost of the filing would be. But turns out $150 later, I’m official and my taxes haven’t changed too much as I’m a one-woman business (only hiring contractors that I don’t have to provide benefits or full-time wages) so monetarily it is NOT that big of a deal.
3) You may have heard that an LLC is not for you. You have plenty of other options!
If it turns out your business could be a little more complicated and/or you need different tax benefits, you don’t have to do what everyone is telling you. The key is to make sure you speak with your attorney and accountant to figure out which one is best for you (you’re going to have to hire them anyway, at least on an as needed basis for your business) so have them get acquainted with you now so they can give you direction that you need professional help with.