Should I become an LLC?

Question

I work as a part-time technical contractor and have been getting a steady increase in work over the last year or so. It's morphed into something bigger than I had planned. I still will earn less than $20k this year and I don't plan on hiring employees. I probably need to get some business insurance, though (since I'm working with client computers and databases). I'm wondering if I should become a "real business" and if so, is LLC the best type for me? I live in WA state. Any assistance is great. Not really sure where to start. Thanks!

Answer 1

I have not incorporated.  I am staying as a Sole Proprietorship.  I don't think the $1,000 to set up an LLC actually shields me.  If you were making $900,000 , maybe you should be an LLC, but probably not.  You can sense when you are crossing into dangerous legal waters; customers asking you to do things you hesitate to do.  So just keep going.  I made $24,000 last year and planned to make lots more than that this year.  Hasnt happened so far. /