For those that take on small freelance projects on the side (more consulting/work for small companies, night/weekend hours), is it worth setting up an LLC for that? Do you typically lower your rate for small companies vs what it would be freelancing at a day rate for an agency?

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I just took on my first freelancing gig for a very very small start up, on the side. I would say don’t lower your rate because that just sets a base for yourself. As far as the LLC I spoke to a friend about this and they said it’s only really worth it if you have more than one employee in your consultancy.

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Thank you! Super helpful

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Absolutely worth it to set up an LLC for yourself. It’s fairly cheap (my accountant charged me $175), and you can write off way more than you can as a sole proprietor.

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Is your accountant looking for new clients? I want to do this I just need an accountant

Make the LLC. Write off your life. Keep more of your money.

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I disagree with anyone saying it’s not necessary. People in our industry can get weird. An LLC legally protects your assets. It costs very little.

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LLC should help a lot with taxes.

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Would agree about the LLC not being necessary, just make sure to set aside ~40% of the income for taxes unless you’ve accounted for that in your primary role’s tax withholding.

Oh yes great point!

For those saying set up the LLC, did you all go through an accountant?

Yes

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