A Freelancer's Guide to Legal Entities

In the modern economy, freelancing has become an increasingly popular option for people who want to supplement other income or even start a new career. A 2014 survey by the Freelancers Union found that 53 million Americans are freelancers, which they claim represents 34 percent of the workforce. Businesses are increasingly turning to freelancers to supply services that used to be provided by full time employees or larger consulting firms. As a consequence, freelancing has become a dynamic, sophisticated, and potentially lucrative career choice. With these opportunities comes greater risk, as freelancers begin working in litigious industries and on projects with high dollar value. Many freelancers think about forming a legal entity, such as a corporation or LLC, to protect themselves. But the decision about whether or not to form an entity, and what kind of entity is best, isn't necessarily easy, especially once the freelancer starts digging into the cloud of legal issues that surrounds organizing a legal entity. This book is a concise guide to legal entities and their related technicalities, specifically addressed to the needs of freelancers. Many topics that a typical small business guide covers, like complicated financing arrangements and dealing with multiple owners, just muddy the waters for a typical freelance business, which is owned and operated by one person and has few financial requirements. By focusing on the issues that will be most useful to freelancers, the book offers clear, specific guidance to its readers. Examples using hypothetical freelancers in different industries (editing, photography, web design, etc.) will help readers apply the book's abstract concepts to their real-world situations.