I never meant to start an LLC. In fact, I thought only fratty business bros could create them. LLC stands for “Limited Liability Company” and it’s not as exclusive as it sounds. Anyone can make one, and I believe it is completely worth the $100 investment.
I made my LLC on a whim, and the hardest part was thinking of a name for it. All I had to do was find my state’s LLC hub and fill out the appropriate forms. Within a day or so, Major Tom Communications LLC was up and running.
Now the easy setup is great and all, but I bet you’re wondering: why start an LLC?
Well, it’s in the name. When you make an LLC, you are less liable for any losses or legal issues that may appear in your freelancing journey. These are unlikely to occur on platforms like Pangea, but if they did it'd be tied to your LLC, not you as a person. The benefits of freelancing through an LLC include:
- Asset and Liability Protection
- Tax Breaks and Savings
- Business Credit Lines
- Appears More Professional and Legitimate
In short, your LLC will act as your bodyguard, protecting any of your personal assets (money from summer jobs, tuition reimbursement, that Christmas check from Grandma, etc.) from any harm.
Creating Major Tom Communications LLC was a great way to jumpstart my career from a disgruntled, unemployed recent grad to a full-time marketing director. Major Tom Communications is still up and running despite being hired full-time by one of my clients, because it allows me to manage my other Pangea projects. In this case, my LLC separates my Pangea earnings from my yearly salary, so I'll be offered some slack on my Pangea profits come tax time.
If you are on the fence about starting an LLC, I recommend you go for it. It is an investment that pays for itself and may be one of the most important one-time purchases you will ever make. Soon, all your friends are going to rush to you and say: