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That’s likely a question for your accountant or tax professional, and will vary by state and financial situation
When I spoke to my accountant about it (CA based) he set a threshold for me: if I expect to make in a year less than 100k, don’t start an LLC. If you predict going over, might be worth looking into.
Phew glad an actual professional backed up my line of thinking lol
No need to rush an LLC before the gig starts. Do it when you have time and learn all the ins and outs of how to use it to your advantage.
You should be fine for now to just get paid as an individual contractor. Not a dumb question at all! Everyone wonders when they start freelancing. Hope the job goes well!
If you freelance as a W2, you’re legally allowed to collect unemployment between gigs. If you pace it correctly, this can wind up netting you more money than the few bucks you can squeeze out through tax deductions from being a 1099. As a 1099, you get nothing between gigs.
My friend went freelance and a couple grand to become an LLC, and it helped with taxes and write offs.
Thanks all, edit to add: this is part time freelance work in addition to my full time job. I do not expect to make more than a couple hundred $$$ here and there
I've been getting paid as an individual contractor as of now...my accountant told me the LLC doesn't really matter, similar to what CD1 said