The freelance economy is booming, for good reason! We make forming an LLC for your freelance business easier than you think.
What is an LLC for a Freelance Business?
An LLC, or limited liability company helps protect your personal assets. It makes your freelance gig a business entity that’s separate from you as a person. If someone sues your business (it can happen!), personal assets such as your home, vehicles, and valuables aren’t at risk. As a sole proprietor, you’re not protected.
Do I Need an LLC for My Freelance Business?
Good question! No, you don’t legally need an LLC. It’s highly recommended, however, thanks to its numerous benefits.
A freelancer is still running a business. In addition to the limited liability protection, an LLC gives you increased credibility, flexible tax status, easier scalability, and enhanced digital presence. There’s no downside to registering your business, and we make it easy!
Benefits of Forming an LLC for Your Freelance Business
Reduced Personal Risk
An LLC shields your personal assets (like homes, cars, or savings) from business liabilities.
Flexible Tax Status
Tax flexibility is great for growing businesses. An LLC’s default tax status passes your business income through to your personal return. As your business scales, you can opt to be taxed as a corporation for even greater tax savings.
Increased Credibility
An LLC can make your freelance business appear more professional and established to potential clients. In the digital space, trust is crucial. An LLC differentiates you, attracting higher-paying clients and larger projects.
Easier Scalability
It’s easier to bring on team members or partners as you grow. You don’t have to restructure the entire business. This can be beneficial for scaling digital operations or collaborating with other professionals in your niche.
Enhanced Digital Presence
An LLC allows you to operate under a business name. This helps your create a strong brand, secure domain names, and maintain social media handles across platforms. There’s a clear separation between your personal and professional online identities. Click Start My Business to get started!
It’s quick and easy to form a business in your state.
- Choose your business name.
- Click Start My Business to register your LLC.
We can handle every part of your LLC formation:- Business structure designation
- Registered agent services
- Operating agreement creation
- File Beneficial Ownership Information (BOI)
- Employer Identification Number (EIN)
- Opt in to open your business bank account with Relay Bank
We get you up and running as quickly and as easily as possible, so you can start turning your business ownership dream into reality. See how it works. - Get any required local licenses. If you're selling products, you may need a sales tax permit.
- Meet your local compliance requirements while you’re in business. Don’t worry! We specialize in helping you stay compliant.
Start a Freelance Business: What to Consider
Evolving from freelancer to business owner can be a big step, depending on what you already have set up. Here are some steps to consider.
Choose Your Business Structure:
Chances are, you’ve been operating as a sole proprietor. This is when you simply start conducting business. When you compare a freelance LLC or a sole proprietorship, the LLC benefits are clear. As a sole proprietor, there’s no legal separation between your business and you as a person. This leaves your personal assets at risk if your business is sued. You also have little privacy because your personal name and address are being used.
This is why an LLC is a good idea. As mentioned, LLCs, or limited liability companies, protect your personal assets from business liabilities. They offer flexible management and taxation choices.
A corporation is best if your goals align with its benefits. If you’re looking to go from freelancer to agency owner with outside investors, you want to look at forming a corporation. It better supports outside funding and rapid growth. Corporations are complex structures that need to be registered and require compliance maintenance. If this is your plan, we can help!
Name Your Business
A business name is crucial for any business. You can still use your personal name as your business name. If you’ve built brand awareness and credibility around your personal name, keeping it can be your best bet.
For any business, your name should stand out in the market, build trust, and be easy to remember. Also, your name should reflect your brand’s personality.
Whatever direction you choose, search the internet to see what already exists in your space. How others position themselves can give you ideas. Check what’s available for your website’s domain name and on social media.
See what else is competing for your search terms. Enter terms into search engines that your customers would use to find your product or services.
Conducting a trademark search using the United States Patent and Trademark Office's database is a good idea to make sure your chosen name isn't already trademarked. Check to see if your name is available in your state's business registry. You can often do this online via the state's Secretary of State website or business registration portal.
Once you have your name and structure, you’re set to form your LLC!
Write a Business Plan
A key step in going from freelancer to business owner is writing your business plan. This roadmap contains your goals, strategies, financial projections, and operational details.
There are several different formats for writing a business plan, and most include these basic sections:
- Executive summary
- Company description
- Market analysis
- Organization and management
- Products and services
- Marketing and sales strategy
- Funding needs and requests
- Financial plan and projections
If you’ve been freelancing for any length of time, the good news is you have some real-life data. You may already know your competition, for instance. Writing it down on paper will give you even greater clarity.
Create Your Offerings
One of the biggest mistakes service-providers make is not clarifying their offerings. Beginning with one or two main services lets you perfect these before expanding. Lay out the exact scope of work.
You can also offer different service levels. This caters to various budget ranges and needs. This can include basic, standard, and premium options.
Focus on services that align with your skills and knowledge. This ensures high-quality delivery and helps establish your authority in the niche. Communicate the benefits and outcomes clients can expect from your services.
Identify Your Target Customer
Identify your target customer before you do anything else. Your marketing effectiveness relies on connecting with this person. If you’re talking to everyone, you’re talking to no one. Connection is the key to converting people into paying clients. They need to know, like, and trust you. Understand exactly who your customer is, what they want and need.
Good brands know their target audience well and speak to them in a way they understand and like. This includes knowing not only demographics but also psychographics, or attitudes, values, and fears.
Develop a Strong Brand
A strong brand is your company’s unique identity. It makes you memorable. If you’re continuing to build upon your personal name’s awareness, you’ve got a head start!
Several key parts make up a strong brand. A good brand has a clear purpose. This means you know why your company exists. A strong brand also has consistent messaging. Your content creation efforts will have a consistent brand voice. Another aspect of your brand is its visual identity. This includes your logo, colors, and design aesthetic.
You want to connect with people on an emotional level. Your brand should make them feel something, whether it's happiness, trust, or excitement.
Another key aspect is being authentic. You want to stay true to yourself. Whether someone visits your website, uses your service, or talks to you, the experience should feel the same. Building a strong brand takes time and effort. If you start with a solid foundation, you’ve won half the battle.
Map Your Customer’s Journey
People first have to be aware of you. How will that happen? The customer journey is how people will find out about your business. The steps in this journey are often referred to as your marketing funnel.
Where does your target audience hang out and how can you get in front of them? If people are searching for the solutions you have to offer, search engine optimization will be a priority.
If people will find you through social media, you can prioritize organic and paid campaigns. If it’s through your community, getting active will be one of your first activities. Many freelancers leverage public relations tactics. Podcasts and guest blog posts are excellent ways to get your name out there.
Wherever people start to know you, at some point, they go to your website.
Develop a Website
A website is usually the foundation of a freelance business. It needs to be user-friendly and visually appealing. Decide if you want to outsource this to a developer or create it yourself. Many DIY web-building options offer flexible, affordable plans.
As you develop your website, remember to keep your target customer in mind. Make sure your brand messaging and brand voice are consistent and authentic.
Because you have your customer’s journey mapped out, think of your website as continuing the conversation. The first thing someone should see when they come to your website is the answer to, “what’s in it for me?” That comes from your unique value proposition.
If search engine optimization (SEO) is important, hiring a digital marketing professional can save you time and money. Make sure that your web pages load fast, that you optimize your service pages, and that it’s extremely easy for users to navigate through the site.
Choose a Customer Relationship Management tool
Your client’s experience can set you apart from other freelancers. Automation is also your best friend from an efficiency perspective. Combining these two facets is easy with a reliable customer relationship management (CRM) tool.
A CRM tool is your hub for managing customer relationships and data. It organizes customer information, enhances customer service quality, and streamlines sales tracking. CRM systems often include marketing automation features, saving time and improving campaign effectiveness. They provide valuable analytics and reporting, offering insights into customer behavior and business performance that inform strategic decisions.
For growing freelance businesses, CRMs offer scalability and can integrate with other tools, creating a more efficient workflow. By improving task management and providing a comprehensive view of customer interactions, a CRM helps your clients stay informed through personalized experiences.
Embrace Technology
From brand awareness to email marketing, technology is crucial. Your project management, invoicing, CRM, video conferencing, social media posting, and more all require technology.
We live in times when artificial intelligence speeds up our research and brainstorming. Video conferencing is now considering normal, and recording a virtual meeting can save you hours. AI transcription tools help lesson the administrative burdens. Innovations are happening at lightning-fast speeds.
With an overwhelming number of options on the market, it’s easy to get lost in choosing the right one. The right technology is the one that you’re most likely to actually use. As your business changes and grows, you can adjust along the way.
3 Reasons to Choose LLC Attorney for Your
LLC as a Freelancer
Fast
Get your LLC formation filed within 24 hours. When you’re ready, we’re ready.
Affordable
We keep our pricing low and transparent. You don’t have to worry about surprise costs.
Reliable
We have a curated group of experienced attorneys and paralegals.
AUTHOR
LLC Attorney Team
Welcome to LLC Attorney, where our mission is to make the process of forming and maintaining your LLC as smooth and stress-free as possible. Our team is a dedicated group of professionals with a shared passion for helping businesses thrive.
