Sole Proprietor or LLC?

[JennWith2Ns]

One more question for the night!

As a freelance writer, are you a sole proprietor or LLC when it comes to filing taxes and so on? I'm curious what others do.

[maryalene]

I just use my SSN and file a Schedule C with my tax return.

[kinyaworksfromhome]

Right now I'm a sole proprietor. But I am considering an LLC.

[VintageMama]

I took the LLC route.

[karmicwindows]

I'm married and took the route of a general partnership between my husband and myself. I'm the majority owner but it was a sensible solution for estate planning purposes. There can be complications for a spouse if they have to deal with taking over a sole proprietorship. With a general partnership you can still file a Schedule C, you still have an EIN, and all of the other benefits and drawbacks of doing business without the complications of added paperwork.

[NerdyCat]

How much would you have to make before you're considered an LLC?

I work so many different jobs as an independent contractor (that's fancy speak for freelancer ), so it's hard to keep track. I didn't know if it would be easier to file all of these as payments to my business, or just to keep track and list each site separately, with my salary from each.

I need to go buy a ledger tomorrow!

[karmicwindows]

I would list them all under one business. I do several different things for different clients as well as projects that generate revenue shares and royalties; everything goes under a single business name. If your business has a universal enough name you can get away with it. If you have an overwhelming urge to separate out the different things that you do then create one head company with several divisions to fine tune your earnings. Ultimately the taxes are filed under then head company but you can still see where all of your money is coming from.

There are lots of ways to organize a business and you may try a couple before you settle on what works best for yours. I've been through the range. I will say that in my experience, if you are dealing with sub-contractors or are presenting yourself as a broker in any fashion to file for a corporation; it offers more protections and has more flexibility than any other business set-up. Nevada and Delaware still offer the best privacy protections for corporations

Originally Posted by NerdyCat

How much would you have to make before you're considered an LLC?

I work so many different jobs as an independent contractor (that's fancy speak for freelancer ), so it's hard to keep track. I didn't know if it would be easier to file all of these as payments to my business, or just to keep track and list each site separately, with my salary from each.

I need to go buy a ledger tomorrow!

[geargirl113]

I file as a sole proprietor.

[MoneyMakinMama]

My writing business operates as an LLC.

[emily3247]

Is it hard to track money and file taxes with an LLC? I've been considering it too, because I do a lot of different things, but I'm unsure of how the taxes would actually work. Do you keep your same EIN when you transfer your business to an LLC?