When I initially set up my freelance business, I filed as a Sole Proprietor.

Why?

Honestly, because it was the cheapest option. I (slightly) knew the differences between an LLC and a Sole Proprietor, but I didn’t want to spend the money for an LLC.

However, could there be more advantages to an LLC beyond the possible protection of personal assets from a business-related lawsuit?

Interestingly enough, setting yourself up as an LLC could possibly position you as more professional and attract higher paying clients.

“On the other hand, including your LLC in your email signature or resume can signal to a potential client that you are a professional who understands the business of freelancing.

To quote Alex Lipton at Shake:

Clients notice the difference between “Frank Underwood Design” and “Frank Underwood Design, LLC”. It sends a clear signal that you take your business seriously and will treat clients with the attention and respect that they deserve.

Lipton also notes that having an LLC shows companies that you understand your role as an independent contractor.”

Check out the full article at The Freelancer.