freelance filing under a 1099 vs creating an LLC?
Submitted by Anonymous on Mon, 2008-06-16 18:29.
Hi Linda and thank you in advance for all you great inside and help.
I'm a freelance graphic designer who has been serving the same business for the past 10 years. I've been filing all this year under the 1099. My questions is, does it make any sense to form an LLC instead my current status. Is there any advantage?
thank you.
CARLOS
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LLC vs 1099
Hi Carlos,
If you form a single-member LLC you will be filing the same federal tax forms and following the same tax rules. So, strictly from a federal tax perspective it wont make any difference. Most states have a LLC fee that you will need to pay that doesn't apply to sole-proprietor/1099. California's fee is pretty high ($800), but most states are significantly less expensive.
However, you might want to form an LLC to protect your personal assets in case there is a problem in your business.
I hope this helps.
L:)
1099 for single LLC
Linda,
I just set up a single member LLC for myself. In the past, I was 1099'd by the people I do work for. Will they now 1099 my LLC or me personally? OR, do I not receive 1099's anymore now that I am set up as an LLC?
This gets so confusing, thanks in advance for any help.
1099 for single LLC
Linda,
I just set up a single member LLC for myself. In the past, I was 1099'd by the people I do work for. Will they now 1099 my LLC or me personally? OR, do I not receive 1099's anymore now that I am set up as an LLC?
This gets so confusing, thanks in advance for any help.