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The surprising cost of working freelance

Becoming a business
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Becoming a business

For her freelance business, Kanarek created a limited liability company, or LLC, to ensure she had personal liability protection.

With an LLC, owners have limited personal liability for the debts and actions of the company. It can protect your car and house should you get sued. It can cost $500 to $1,000, but it's worth it, Kanarek says.

She recommends having an attorney create your LLC. "Anything having to do with the law or money, you want to do it professionally," she says.


 

 

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