Should I become an LLC?

Post date: 2020-01-24 07:49:46
Views: 394
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:
Bill Ackman built Microsoft stake in first quarter during sell-off, betting on AI and cloud growth
We traded our smartphones for flip phones for 4 days—and learned that ditching modern technology is harder than it sounds
Stocks like Nvidia have accelerating 'momentum,' Goldman Sachs says
How to plan a trip for medical tourism and the best resources
Trump says China and Taiwan should 'both cool it'
Cerebras' blockbuster IPO boosts hype for SpaceX and OpenAI, but crowds out smaller players
What you need to know about Nvidia competitor Cerebras after wild IPO
Can you help me learn to make 3D shapes out of paper?
Good Omens: The Finale
Creator content made the main stage at TV's 'upfront' pitches — and not just for YouTube