Should I become an LLC?

Post date: 2020-01-24 07:49:46
Views: 632
I've been a sole proprietor for 20 years without legal incident, and I'd love to stay that way. But I'm in the process of renegotiating my contract with my main client, and it has me considering becoming an LLC. My question is, how much protection would I really get as an LLC, and is it worth the PITA accounting? And yes, I will speak to a CPA and a lawyer, too.

I'm a freelance writer and editor. For the last 20 years, I've had great relationships with clients and no legal issues. For the last 12 years, my main client has been a marketing/advertising agency. Good relationships there, too.

However, we're currently in the process of renegotiating my contract, and they're trying to get me to indemnify them against any damages caused by my actions. Given that *their* clients are large corporations and could sue for megabucks, I'm trying to get that indemnification limited to the dollar amount covered by my insurance. Seems only reasonable to me, particularly given that I have no control over how the agency submits my work to their clients. (They can edit it as they see fit before they send it over.) And if they agree to that dollar limit, I'm protected, right? (Real question.) (Not rhetorical.)

And yet: I own a house, have retirement savings, etc. So I'm pondering whether it'd be worth it to become an LLC. Would becoming an LLC truly protect my house and other assets? I think so, yes?

Fwiw, the chances of the agency getting sued over something I did seem extremely slim to me. Basically, I would have to knowingly infringe on the copyright of somebody else's work, which I won't do; or break an NDA, which I won't do; or commit some kind of fraud, which I won't do. On the other hand, anything is possible, right?

But oh, how I would love to avoid becoming an LLC. I just don't want to have to deal with all the new accounting and taxes, etc.

I'll talk to my CPA and also to a lawyer, but I'd love to get as much information as possible, thanks!
Number of Comments
Please click Here to read the full story.
 
Other Top and Latest Questions:
Cramer says higher rates are splitting the market in two — and AI stocks have a big advantage
Supertanker chartered from Gulf Coast to China for $76 million, 10 times higher than pre-war level
Barclays sees big haircare gains for this consumer stock as shoppers prioritize self-care
Trump trade chief Greer reports higher cash holdings as law firm pay topped $650K
Microsoft to sell $2,599 Surface Laptop Ultra containing Nvidia AI chip
Lululemon poaches Athleta CEO as new chief product officer
FCC to vote on auctioning 25MHz of 'prime spectrum' in move that could benefit Amazon, SpaceX
Movie: Digger
Stock futures are little changed after S&P 500 retreats from record: Live updates
Samsung forecasts record third-quarter profit of $80 billion as AI boom fuels chip demand