Legal Question in Business Law in New York

Re: Better to Freelance or start a business?

This is not a legal question...rather, one for your accountant to advise you. After that, the appropriate legal entity for whatever you do may be created.

Good Luck.

RRG

Re: Better to Freelance or start a business?

I think that you are confusing a couple of different issues. Being a "freelancer" paid on a 1099 you are essentially a sole proprietor whose business is whatever it is that you do. The question I think you are asking is whether you should form a legal entity and run your business through that entity. In that situation you would be an employee of the entity. The question of whether to form an entity and what kind of entity to form is complex and can not be answered with the little information that you gave. You should either consult with an attorney or an accountant.

If you are collecting only one 1099 at the end of the year, there may also be some question of whether you really are a freelancer or a common-law employee.

Best of luck.

Re: Better to Freelance or start a business?

A part of your question relates to tax issues so you would need to contact a tax professional for the explanation of what business deductions you may be eligible to take and what other advantages there may be in forming a business that you are not eligible for as an individual taxpayer.

However, from the legal perspective you may want to consider creating a company instead of being a sole proprietor for the reasons of obtaining limited liability, certain degree of privacy, and separation of your personal and business finances. There may also be business and marketing reasons for creating a company.

Please note that this reply is in the nature of general information, is not legal advice and should not be relied upon as such.