✅ Corporate Shield
I'm going to do some work for Protocol Labs.
It's a part time role and the project has been scoped to last about three to four months. I'm excited to work with a company as an independent contractor / consultant rather than an employee. It means everything is designed around the development and implementation of a project.
I love projects! And while this is new to me, it also feels like the right way for me to engage in work in the future.
My question for the shareholders is what sort of protective corporate shield should I create for my professional life?
a sole proprietorship
* advantage: don't have to do anything
* disadvantage: no legal shielding
a california LLC
* advantage: simple
* disadvantage: boring, some costs
a wyoming DAO
* advantage: weird and new
* disadvantage: weird new thing nobody understands
a delaware C corp
* advantage: fun
* disadvantage: expensive and complicated
an offshore company
* advantage: very weird
* disadvantage: very complicated, maybe unethical (tax dodge)
Note: KmikeyM controls my personal life and decisions, but not my work life. This legal corporate entity will be unrelated to the KmikeyM project in terms of votes and choices (in the way my work life has always been separated).
36 users voted with 3631 shares
Starting my vote off with a preference for sole proprietorship. If you plan to keep up the freelance work for awhile an LLC will start to make more sense.
The others are probably useless outside of conceptual appeal.
Agree with Marcus, but feel like there is some non-liability benefit to having a corporate entity for yourself, and that should be an LLC.
You’re already essentially a sole prop — just everything passes through on all those 1099s, so that feels like a nothing option. Kinda a non-vote.
but since I only have one "client" right now, maybe that is the best option?
If you decide to form an entity, do it in the state in which you live and work (in this case, CA and not in WY or DE) unless you love to double up on compliance paperwork and tax filings.
I have an S-Corp and really recommend it. Tax-wise it's been a miracle.
Go Fighting Blue Hens!!!
You are a Lawful Neutral Druid. A Sole Proprietorship makes the most sense.
Having an LLC is cheap and sometimes having a brand new LLC is not desirable, so even if you don't use it for awhile you can keep it simmering with an annual filing and fire it up when ready.
StripeAtlas has a bootstrap offering that makes you a Delaware LLC for not much money. So that’s an option
I really like being able to choose multiple options here. Sole prop and LLC for me.
A Wyoming DAO controlled by the shareholders.