Do I need an LLC for 1099 work?
No. If you take 1099 work you're already a sole proprietor, with no paperwork needed. An LLC adds a layer between your work and your personal assets.
What an LLC changes
Clients contract with your company, and you get a clean line between business and personal money. Some larger clients prefer to pay a company.
What it doesn't change
A single-member LLC is normally ignored for federal income tax, so you still report on Schedule C and pay self-employment tax. Saving on tax usually comes from an S-Corp election, which only makes sense above a certain income. An accountant can say where that is for you.
Questions
Will my clients send the 1099 to the LLC?
Yes, once you give them a new W-9 with the LLC's details.
We're not a law firm or a tax adviser. This is general information, not advice for your situation.
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