What is LLC?
An LLC (limited liability company) is a business structure that shields owners' personal assets from business debts while keeping taxes simple — profits pass through to owners' personal returns. It's the most popular step up from sole proprietorship for freelancers and small firms.
In practice
A designer's LLC is sued over a $20,000 contract dispute. Her personal savings are protected; only the business's assets are at risk.
Invoice under your LLC
Put your LLC name, EIN, and logo on every professional invoice.
Create an invoice — freeFrequently asked questions
How much does it cost to form an LLC?
State filing fees range from about $50 to $500. Beware of services charging hundreds extra for what is usually a 20-minute online filing.
Does an LLC change my taxes?
By default, no — a single-member LLC is taxed like a sole proprietorship. The benefit is liability protection, not tax savings (though S-corp election can save taxes at higher incomes).
LLC vs. sole proprietor for a freelancer?
The LLC costs a little and protects a lot. Once you're earning real money or signing real contracts, the liability shield is worth the filing fee.