Working as an independent contractor, or being an LLC, is typically one in the same. An LLC just gives you legal protection that just being an independent contractor does not. Further, you can save more money in taxes being an LLC, because you can elect for that LLC to pay tax as an S-Corporation. This would save you 15.3% and self-employment tax.
Hope this helps
Craig W Smalley EA
Admitted to Practice before the Internal Revenue Service
In and of itself, there are no federal tax benefits or drawbacks to establishing a Limited Liability Company (LLC). If you're the single member of the LLC and haven't elected different tax treatment the IRS will view it as a "disregarded entity," meaning that all income/expenses will flow-through to you just as if you're a sole proprietor. The potential benefit of an LLC is not taxes but rather protection from liability vs. the exposure you have as a sole proprietor. That said, depending on your income level there may be some tax benefits to establishing an LLC and then electing it to be taxed as an S Corporation. For example, with an S Corp you may be able to split total income into a "reasonable salary" for yourself (pay income taxes, Social Security/Medicare taxes) and the rest as S Corp profits (pay income taxes but no Self-Employment Tax). Be aware that LLCs are a creation of state legislation and you'll want to check with your state on filing and fee requirements. Also, operating an S Corporation adds complexity and expense in corporate procedures, accounting, and separate tax filing. Treat this as general information and be sure to consult a business attorney or CPA for any advice specific to your situation. I hope this helps.
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