Should I become an LLC?

Post date: 2020-01-24 07:49:46
Views: 243
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:
Pentagon is embracing Musk's Grok AI chatbot as it draws global outcry
The top 10 jobs in the U.S. for 2026 all pay $100,000 or more, according to Indeed
Novo Nordisk CEO explains why new GLP-1 pill expands access to the weight loss drugs
Trump calls for credit card interest rate cap: Options for consumers if credit tightens
SK Hynix to invest $13 billion in new plant amid memory chip shortage
Trump says Microsoft will make changes to ensure consumers don't pay for power used in AI buildout
Elizabeth Warren fears workers will 'lose big' with 401(k) crypto, presses SEC chair Atkins for answers
Trump floats 1-year, 10% credit card interest rate cap — what that could mean for your money
Fanatics to launch sports media and entertainment studio
Global central bankers unite in defense of Fed Chair Jerome Powell