I had been doing freelance graphic design work for years before I decided to look into forming a separate entity, only because a buddy of mine had told me a horror story of how he had made a mistake with his sole proprietor business and he might be sued, and that his brand new house could be up for grabs if the lawsuit proceeded.
Luckily for my friend a lawsuit didn’t come out of his mistake, but he was set on incorporating his business.
After reading about the differences between corporations and LLCs I decided, even though I don’t feel I’m up for much loss running as a sole proprietor, that an LLC was the better choice for me. It seemed a little easier to run, and I don’t really ever plan on having employees, or other owners, also if I ever did, I found that it was a simple form to convert an LLC into a corporation.
Although you can form your entity in any state, I decided to form mine in my home state of California, a quick Google search gave me a list of companies that could help me form it, but I decided to do it myself, though many of the companies were legit, though I spoke to a couple of them Incorporate Fast was most helpful in explaining the differences between the entities.
Like I said, in the end I ended up filing for myself, it was just one sheet of paper, and I was with that. California Secretary of State
Why I Had to Form an Llc
Why I Had to Form an Llc
About the Author:
A graphic designer with an extensive portfolio.
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