How to open a LLC for freelancers in 2023

How to open a LLC for freelancers in 2023

If you’re a freelancer and want to register your brand, you might be considering the idea of registering an LLC for freelancers in the United States.

That’s why in this article, I’ll guide you and answer the most frequently asked questions about Limited Liability Companies.

You’ll understand why it’s a good choice, its benefits, how to open it, requirements, taxes, and more.

Let’s get started.

Why is an LLC Your Best Option as a Freelancer?

If you’re a freelancer, you might be the only person in your business.

Perhaps you have the assistance of other freelancers collaborating on your projects, but most likely, in your personal brand, it’s just you or you and a few others.

That’s why you need a structure that’s easy in terms of registration processes, easy to manage, and can be opened in a few days.

An LLC fulfills all the aforementioned criteria. Unlike, for example, corporations that are more complicated and rigid, mainly suited for larger companies (with more employees, departments, and responsibilities).

But, should I only start an LLC in the US for that reason?

No, there are more reasons that give it an edge to its main advantage. Let’s see what those reasons are.

Benefits of Opening an LLC for Freelancers

In addition to the previous point about the ease and speed of creating an LLC, we have these other benefits.

  • An LLC separates your personal assets from your business. So, if your business is sued, it won’t affect your personal assets, such as homes, banks, high-value items, and more.
  • Trading in dollars becomes simpler.
  • It enhances your credibility and professionalism.
  • You can trade anonymously.
  • Tax benefits.
  • Convenience and ease in processing payments from your clients.

 

Are you convinced that an LLC can help you as a freelancer?

Great, then it’s time to see what you need to start your business in the U.S. and sell your freelance services.

Requirements for opening an LLC

The only requirement asked of you is that you are of legal age.

Below, the following list includes a series of requirements that are not necessary, but many people still think are mandatory.

  • You don’t have to live in the USA to open your LLC.
  • There’s no need to travel to the U.S.
  • They won’t ask for a Visa or a passport.
  • You don’t need any U.S. address.
  • You can open your LLC as the sole member.
  • You don’t need a U.S. phone number.
  • You don’t need any U.S. tax identification like SSN or ITIN.

 

So, don’t worry, opening your LLC can be simpler than it seems.

Steps to Register My LLC as a Freelancer in the United States

1. Select the State of Registration

The first step is to choose the state where you will register your LLC.

If your company won’t have a physical presence in the U.S. (for example, if you only offer services online), then you don’t need to worry too much about the state.

The most common choices for LLCs are:

  • Delaware
  • Wyoming
  • New Mexico
  • Texas
  • Florida
  • North Carolina

 

It doesn’t mean you should choose only from these. It’s important to conduct a thorough analysis and decide which one best fits your needs.

And if this seems too complicated for you, you could request personalized assistance to help you with your selection.

2. Define who will be the LLC members

Will it be just you, or will you open your company with someone else?

Once you define this, you’ll need to provide personal information about each of the members.

Information such as:

  • Name
  • Nationality
  • Country of residence
  • Date of birth
  • Percentage of ownership

 

Even if you are the sole owner, you must provide this information.

3. Choose a name for your company

Being an LLC for freelancers, it’s likely that the name you want to register for your brand is your personal name.

If this is not the case and you have a different name, let me show you the main requirements when creating a name:

  • The name of the registered brand must include the phrase “Limited Liability Company,” it can be in its abbreviated form: LLC, L.L.C, Ltd, Limited, Company, or CO (most choose “LLC”).
  • It cannot include words that might confuse your LLC with government or federal agencies like Treasury, State Department, FBI).
  • It also cannot contain restricted or limited words such as Bank, Attorney, University, etc.
  • The name must not be the same as any other registered company in the chosen state.

4. Create an Operating Agreement

The Operating Agreement is a document that establishes rules, procedures, and decision-making regarding finances.

Even though it’s not a mandatory document, we strongly recommend having it.

By setting these rules and procedures, you’ll know what to do in case of a dispute between members, the ownership percentage for each owner, and what to do in case of a financial emergency, etc.

It doesn’t matter if you’re a single member; it’s important to have an Operating Agreement.

Need help opening your LLC for freelancers?

At Rex Legal, we are ready to provide the assistance you need when creating your business in the USA.

We understand that this process can be a bit complicated or tedious, so if you want us to take care of it, just contact us.

Related Posts
Leave a Reply

Your email address will not be published.Required fields are marked *

3 × 4 =