Should I become an LLC?

Post date: 2020-01-24 07:49:46
Views: 209
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:
34-year-old was saving to buy a house, then decided to focus on early retirement instead: 'I value my time more than home ownership'
Top 10 trending destinations for U.S. travelers in 2026: 'Americans are discovering their own backyard,' expert says
China consumer prices return to growth in October, producer price slump extends to three years
Boeing keeps up strong delivery pace in October
Oura expects close to $2 billion in 2026 sales, almost doubling for the second consecutive year
Sonder announces bankruptcy plans; tells guests to vacate hotel rooms: 'People were scrambling'
How 20-year-old Kenyan student turned a local fundraiser into nonprofit serving 600,000 meals a day
Baby boomers are less bullish on ETFs than younger generations, research finds — with good reason
Nuclear power will get the most Energy Department loans, Chris Wright says
Senate passes bill to end government shutdown, sending it to House