Should I become an LLC?

Post date: 2020-01-24 07:49:46
Views: 265
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:
Stocks making the biggest moves midday: Disney, Robinhood, Palantir, IDEXX Laboratories & more
Oracle rises after company announces $50 billion fundraising plans. Here's what's happening
Disney beats Wall Street expectations propelled by theme parks and streaming
Rare earth miners jump as Trump is eyeing mineral stockpile to reduce China dependence
Trump says U.S. and India reached trade deal, will lower tariffs immediately
How to show question title before question meta in question list. (Mayropro theme)
The risk-reward on this payments stock looks attractive. How to trade it using a risk reversal options trade
From Clawdbot to Moltbot to OpenClaw: Meet the AI agent generating buzz and fear globally
Eli Lilly blows past quarterly estimates, posts strong outlook as Zepbound and Mounjaro sales soar
Get the first look at the R2, Rivian's $45,000 SUV. CEO RJ Scaringe gave CNBC an early peek