Business Perspective—LLCs Can Open Doors

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LLCs can also improve your business opportunities. Some states have strict contractor laws, making it risky for companies to hire freelancers directly. Having an LLC reduces the chance of misclassification disputes, potentially helping you secure more contracts or higher-paying clients.

Other benefits include easier subcontracting if you scale to a small agency, and added professionalism that may make clients take your work more seriously. The tradeoff? Setup costs, annual fees, and additional tax filings. But for long-term freelancers, an LLC can be both a shield and a growth tool.