Have you ever wondered if your business is legit? Is there a way to reduce self-employment taxes? If so, read on to learn more about business structures and freelancing.
By default, you’re a sole proprietorship.
If you’ve never actually chosen a business structure, then your business is a sole proprietorship. As the simplest business structure, the sole prop doesn’t separate your personal and business finances. That means that if your business is sued or can’t pay its debts, you may be required to tap into your personal savings and property.
A lot of small businesses transition to a formal business structure like an LLC or Corporation. These structures will help protect your personal assets from any liabilities of your freelance business. And in some cases, there can be tax benefits as well. Continue reading “Tips From A Pro: The Tax Benefits Of Properly Structuring Your Business” »