Wy As a freelancer, you are in control of your own time and schedule. You can work with whomever you want, whenever you want. And you can live and work remotely, from anywhere in the world. These are just a few of the reasons why freelancing is such an attractive career choice.
But did you know that there are new independent contractor rules in the US that threaten to classify many freelancers as employees? This would mean giving up all of the perks that come with being a freelancer, like tax breaks and the ability to work with multiple clients.
Thankfully, there is a way to protect your status as an independent contractor: by registering your small business as a Wyoming LLC. Let’s take a look at some of the benefits of registering a Wyoming LLC as a freelancer
The Benefits of Registering a Wyoming LLC
There are many reasons why registering your small business as a Wyoming LLC is a good idea, even if you’re the only person involved. For one thing, it gives you a higher level of credibility and professionalism. When you tell potential clients that you are registered with the state of Wyoming, they will be more likely to take you seriously than if you were just working as an individual freelancer.
Financial Benefits
Registering your company as an Wyoming LLC also has financial benefits. Because LLCs are separate legal entities, they can establish business credit independently from their owners. This means that you can get loans and lines of credit in your business’s name, rather than having to rely on your personal credit score.
Increased Income as a Freelancer
Another financial benefit of having a registered WY LLC is that it can help you earn more money. Many businesses are hesitant to hire independent contractors because they worry about being liable for employment taxes. But if you register your company as an LLC, clients will be more likely to hire you because they know that they will not be considered your employer for tax purposes.
This also opens up the possibility of you of taking on bigger projects and clients that you might not have been able to get otherwise.
Tax Benefits for Freelancers Using a Wyoming LLC
And speaking of taxes…as an LLC, you will be able to take advantage of significant tax savings . Because LLCs are taxed as pass-through entities, all profits and losses “pass through” to the owners’ personal tax returns. This means that you will only be taxed on your personal income, rather than your business income plus employment taxes.
In short, registering your comapny as a Wyoming LLC has many advantages for freelancers. If you want to protect your status as an independent contractor and take advantage of all the benefits that come with it, register your small business as a WY LLC today.
Conclusion:
Registering your business as an LLC has many advantages for freelancers. If you want to protect your status as an independent contractor and take advantage of all the benefits that come with it, register your small business as an LLC today in Wyoming .
