Ask HN: Should I incorporate as a freelancer?

#1

Post by smockman36 » Mon, Oct 19, 2015, 4:42 PM UTC

I've been freelancing for a few weeks and I am wondering if it's worth it for me to become an Inc, LLC, Sole Proprietor, etc. The only business expenses I've had this year so far are moving and office space. I will be working out of Philadelphia and currently have clients in Boston and Vancouver, but that will likely change as I get more clients. Additionally, I foresee growth as I have been doing similar jobs for my clients and will likely continue to do these types of jobs.

Thank you!

Re: Ask HN: Should I incorporate as a freelancer?

#2

Post by tjr » Mon, Oct 19, 2015, 4:57 PM UTC

In my opinion, an LLC is reasonable for this sort of thing. I'd see a regular corporation as overkill, and a sole proprietorship not offering enough benefit to be worth doing.

Re: Ask HN: Should I incorporate as a freelancer?

#3

Post by smockman36 » Mon, Oct 19, 2015, 5:06 PM UTC

tjr wrote: post #2

In my opinion, an LLC is reasonable for this sort of thing. I'd see a regular corporation as overkill, and a sole proprietorship not offering enough benefit to be worth doing.

cool, thank you. is this common practice for freelancers?

Re: Ask HN: Should I incorporate as a freelancer?

#4

Post by dsparkman » Mon, Oct 19, 2015, 5:57 PM UTC

Go with a LLC. The paperwork requirements are minimal in most US states. It will also provide protection of personal assets in most cases, in the event there is a lawsuit, etc. I would also make sure that you get a general liability insurance policy.

Re: Ask HN: Should I incorporate as a freelancer?

#5

Post by tjr » Mon, Oct 19, 2015, 7:41 PM UTC

smockman36 wrote: post #3

tjr wrote: post #2

In my opinion, an LLC is reasonable for this sort of thing. I'd see a regular corporation as overkill, and a sole proprietorship not offering enough benefit to be worth doing.

cool, thank you. is this common practice for freelancers?

Anecdotally, it seems common to me, but I don't have any real data from which to make serious inferences.