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Freelancer vs. LLC:
Choosing the Right
Business Structure
(2024 Update)
Introduction to different business structures
by tcrd.net
What is a freelancer?
1 Flexible Work
Environment
Work independently,
often remotely
2 No Formation
Costs
Minimal startup expenses
3 Income
Fluctuations
Unpredictable earnings
What is an LLC?
1 Limited Liability Protection
Personal assets separate from business
2 Favorable Tax Treatment
Flexible tax options
3 Increased Credibility
Enhanced professional image
Pros and cons of being a freelancer
Pros
Flexible schedule and location
Independence and autonomy
Cons
Variable income and workload
No liability protection
Pros and cons of forming an LLC
Pros
Limited personal liability
Tax advantages
Cons
Administrative requirements
Higher setup costs
Factors to consider when choosing a
business structure
Legal Protection
Secure your personal assets
Tax Implications
Understand potential tax
benefits
Budget and
Resources
Evaluate initial and
ongoing costs
Key differences between freelancing
and forming an LLC
Liability and Risk
Personal vs. business liability
Taxation
Personal vs. corporate tax framework
Conclusion and recommendations
1
Individual Circumstances
Consider personal goals and risk tolerance
2
Seek Professional Advice
Consult a legal or financial advisor

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Freelancer-vs-LLC-Choosing-the-Right-Business-Structure-2024-Update.pptx

  • 1. Freelancer vs. LLC: Choosing the Right Business Structure (2024 Update) Introduction to different business structures by tcrd.net
  • 2. What is a freelancer? 1 Flexible Work Environment Work independently, often remotely 2 No Formation Costs Minimal startup expenses 3 Income Fluctuations Unpredictable earnings
  • 3. What is an LLC? 1 Limited Liability Protection Personal assets separate from business 2 Favorable Tax Treatment Flexible tax options 3 Increased Credibility Enhanced professional image
  • 4. Pros and cons of being a freelancer Pros Flexible schedule and location Independence and autonomy Cons Variable income and workload No liability protection
  • 5. Pros and cons of forming an LLC Pros Limited personal liability Tax advantages Cons Administrative requirements Higher setup costs
  • 6. Factors to consider when choosing a business structure Legal Protection Secure your personal assets Tax Implications Understand potential tax benefits Budget and Resources Evaluate initial and ongoing costs
  • 7. Key differences between freelancing and forming an LLC Liability and Risk Personal vs. business liability Taxation Personal vs. corporate tax framework
  • 8. Conclusion and recommendations 1 Individual Circumstances Consider personal goals and risk tolerance 2 Seek Professional Advice Consult a legal or financial advisor