4 min 49 sec

Q&A: When should I become an LLC?

Filing an LLC in this listener’s state is expensive … is it worth it? How should you make this decision for yourself?

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What It's About

A listener wonders about the best business structure: LLC, sole proprietorship, or something else.

Notes from Chris

Episode 1175
I get a lot of questions that I can’t answer because I’m not qualified—like the decision to pursue a patent process or not, how to plan for taxes, and one very common one about business structure: should I form an LLC or S-Corp or just remain as a sole proprietor?

I like the way this listener framed the question, because he’s asking for more general advice which is easier for me to give—best practices, common experiences based on many conversations, etc.

"I'm curious about your thoughts on when to incorporate a business... Do you think it's better to do that up front or after hitting a certain amount of clients/revenue? My gut feeling has been to file an LLC first to keep everything organized and official. But filing an LLC in my state (NY) is pretty expensive, so I've been having some hesitations. Is there a common process you've noticed from speaking with so many side hustlers over the years?"

Listen to today's episode to learn more...


Yours in the revolution,


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Chris Guillebeau