I have been on Upwork for many years now, and have developed a regular clientbase as a freelancer. Given the amount of work I currently have, I'm toying with the idea of creating a sole-proprietor LLC, and was wondering if anyone had experience with this and if it would actually be worthwhile. Right now, I dread being hit with my tax bill at the start of every year, and am planning on doing a better job tracking my income so the amount owed isn't a surprise come tax season.
Are there major benefits to creating an LLC, rather than just working as an individual freelancer? Or, is it not worthwhile? I've had no issues working as an individual freelancer, so I'm not sure if it would be worth the extra time and effort.
I'm not an attorney and do not give legal advice. That being said, the reason people typically form a limited liability company is to provide a shield against personal liability relating to the discharge of duties owing to their work. If you have personal liability for the consulting services you give that, in your opinion, constitutes a real risk issue on an ongoing basis, then a single person LLC is definitely an option. There may be some marketing related advantage of doing so that is associated with Upwork but I am unaware of those issues, so you may wish to consider that potential benefit/risk as well.
Have a nice day. Hope this helps you.