The current economy of under-employment has certainly caused a large number of people to look to freelance or part-time work. Freelancers often operate under the radar, many times because they do not understand their tax liability or other reasons to document their work more thoroughly. One way of protecting oneself from liability is to form a limited liability corporation where the freelancer—you—is protected from liability that your business might incur.
As an LLC you have protective options, a buffer between you and debts or liabilities that may incur due to your work. Otherwise you are a sole proprietor, and that means your personal funds, property or assets are tied to the “business”, ie you and your work. 
By establishing yourself as an LLC, you are able to greatly reduce the potential of risk to your personal assets. In other words, you limit the liability that you might face for any incidents or debts that you might incur from your business. What does that mean to and for you? Well if your LLC is challenged or sued for any reason, your assets will be protected. Why not get started online today with a service like LegalZoom?
While it doesn’t protect you from all liability, it does a pretty good job of it. Naturally, if you engage in some type of fraud using your business or someone is hurt through personal physical negligence then the state can hold you liable. Otherwise, this is the perfect way to create a buffer between your personal assets and those of your business.
