There are many reasons why you should form an LLC. One reason is that it allows you to protect yourself against personal liability. When you work for someone else, you may get sued for things you did while working for them. But when you form an LLC, you become responsible only for the debts and liabilities of the company. Therefore, you cannot be held personally liable for any of the debts or liabilities of the company.
Another benefit of forming an LLC is that it gives you complete control over the operations of the company. You can decide who works for the company, how much they are paid, and what their responsibilities are. Also, you can determine whether or not to hire employees.
You can also choose to operate the company under Subchapter S of Chapter 1 of the Internal Revenue Code. Under this option, all income and losses flow through to the individual owners of the company. As such, each owner pays taxes individually on his/her share of the income.
Finally, you can use the EIN (Employer Identification Number) assigned to the LLC instead of your Social Security Number when filing federal taxes.