1

Does anyone have an LLC for side consulting work? How does that work out for you with taxes/write offs? Is it worth it if you only do it on the side? Is it necessary?

I have an opportunity to pick up a couple of clients that I could fully sustain on the side but I don’t want to make the dive into my own business full time… yet.

What say you, Spiceheads?

9 Spice ups
2

For nothing more than legal protection of private assets you should form the LLC. There are possible write off benefits, etc… but the biggest thing is legal protection if you were sued or something.

3 Spice ups
3

Legal protection is the biggest item. If it’s a one-off I wouldn’t worry about it. For recurring business you need to protect your assets.

2 Spice ups
4

As the LLC you should get insurance too, but then you can write that off against the profits as part of your operating expenditures. So that’s a net of no change really. For the peace of mind that the LLC registration fee provides it’s well worth it for regular business.

2 Spice ups
5

Tax laws vary by region.

Here in the UK, I am a sole-trader. Not limited liability (although that’s never really been an issue). The tax treatment, at least so far, is good. I can write off quite a bit, and the audit requirements are minimal. Even when I was employed full time, I was (contractually!) able to work on the side.

6

Thank you all! I think I’ll get this off the ground.

7

It can help with liability, but only if the LLC carries liability insurance for it’s officers and employees. There is nothing stopping a client from suing the company AND you personally.

8

Yes anyone can sue anyone for anything, but it still offers some protection.