For freelancers and solo pros

By default, you and the business are the same person

As a sole proprietor, one bad contract, one client dispute, or one liability claim can reach your personal savings. An LLC ends that exposure, and once you are profitable enough, an S-corp election can cut your tax bill. We set the structure up and keep your quarterly taxes on track as you grow.

LLC liability protection S-corp when it pays Quarterly taxes tracked
The setup behind independent professionals LLC liability protection S-corp when profitable 4.9 from 8,200+ reviews Quarterly taxes tracked
Sole prop
The default, which leaves your personal assets exposed
An LLC
Ends that exposure and separates the business from you
Quarterly
Estimated taxes we keep on your calendar so nothing surprises you
S-corp
Flagged when your profit makes electing it worth the paperwork
The risk of staying a sole proprietor

Your work is a business. Your savings should not be

Working under your own name is the path of least resistance, and also the riskiest. A sole proprietor and their business are legally the same, so a client lawsuit, a contract gone wrong, or a claim tied to your work can come after your personal accounts and your home. And you are likely overpaying tax you could keep once you cross a certain profit.

We form the LLC that draws a line between you and the business, set up the banking and quarterly taxes that keep it clean, and tell you exactly when an S-corp election starts saving you more than it costs.

Working as yourself
  • Personal assets exposed to a claim
  • Business and personal money mixed
  • Quarterly taxes missed or guessed
  • Overpaying self-employment tax
  • Contracts signed in your own name
Set up on File.Business
  • An LLC between you and the work
  • Separate business banking
  • Quarterly taxes on your calendar
  • S-corp election when it saves you money
  • Contracts under the business name
What structure fits your income?

Drag to your profit, see the move

Set your yearly net profit and see where the structure should go. This is a guide, not tax advice, but it shows how the decision shifts.

45,000
An LLC, and start weighing an S-corp
Around this level, an LLC protects you, and an S-corp election starts to be worth considering as the self-employment tax savings begin to outweigh the extra payroll and paperwork.
The right threshold depends on your expenses, state, and a reasonable salary. We run your actual numbers before recommending an election. See S-corp election.
How you go from solo to structured

From sole prop to protected and efficient

Five steps, in the right order. Select one to see the detail.

Step 1

Form the LLC that protects you

An LLC makes your business a separate legal person, so a claim tied to your work generally stays with the business rather than reaching your personal savings and home. We form it in your state with fees passed through at cost.

A legal line between you and your work.
Entity: LLC FORMED
Personal assets separated
Contracts under the business
Step 2

Get your EIN and open business banking

The EIN is your federal tax ID, and a business bank account is what makes the LLC real in practice. Money in and out flows through the business, not your personal account, which protects the liability shield and simplifies your taxes.

A dedicated account so the business stands on its own.
EIN: ISSUED
Business banking opened
Money kept separate
Step 3

Keep business and personal apart

The protection only holds if you do not mix funds, so we help you run income and expenses through the business account and keep clean records. That separation is what a court looks for, and what makes tax time painless.

Clean books that keep the shield standing.
Records: SEPARATE
Income and expenses through the business
Shield preserved
Step 4

Stay ahead of quarterly taxes

Independent income usually means paying estimated taxes four times a year, and missing them brings penalties. We put every quarterly deadline on your calendar and keep your annual report and state filings tracked, so a due date never sneaks up on you.

Every quarterly date on the calendar.
Quarterly taxes: TRACKED
Annual report scheduled
No penalty surprises
Step 5

Elect S-corp when it saves you money

Once your profit is high enough, taxing your LLC as an S-corp can cut self-employment tax on the portion you take as distributions, as long as you pay yourself a reasonable salary. We watch your numbers and file the election at the point where it clearly pays.

The S-corp election, timed to when it helps.
S-corp: WHEN IT PAYS
Reasonable salary set
Self-employment tax reduced
How this compares for a freelancer

Protected and efficient, not just formed

Forming an LLC is easy. Knowing when to elect S-corp and keeping quarterly taxes straight is the value. Here is the difference.

CapabilityFile.BusinessStay a sole propDIY LLCGeneric filer
Liability protection for your assetsNot availableIf maintainedFormation only
S-corp election timed to your profitNot availableNot availableNot available
Quarterly taxes trackedOn your ownNot availableNot available
Business banking set upNot availableOn your ownAdd-on
Annual report and renewals trackedNot availableNot availableIf asked
Transparent, published pricingPer filing

The honest version. A good accountant is worth it once your taxes get real, especially for the S-corp payroll and your return, and nothing here is tax advice. What File.Business does is form the entity, set up banking, track quarterly taxes and renewals, and file the S-corp election at the right time, so your accountant works from a clean setup. Compare on the comparison hub.

BosAI for freelancers

An operator who knows the solo playbook

Ask in plain English. BosAI knows entity choice, the S-corp threshold, and your quarterly dates.

BosAIFreelancer workspace, Jordan Rivera Studio

I'm just starting out. Do I really need an LLC yet?

If your work carries any risk of a client dispute or a liability claim, an LLC is worth it early, because as a sole proprietor your personal savings are exposed from the first project. It is inexpensive to form and it draws a clear line between you and the business. I can set it up this week.

When does electing S-corp actually save me money?

Generally once your net profit is high enough that the self-employment tax you would save on distributions outweighs the cost of running payroll and filing an extra return. The exact point depends on your expenses and a reasonable salary, so I watch your numbers and flag it the moment it clearly pays. See S-corp election.

I always forget my quarterly taxes. Can you handle that?

Yes. Independent income usually means estimated taxes four times a year, and missing them adds penalties. I put every quarterly date on your calendar with reminders, alongside your annual report and state filings, so a deadline never slips by. See your compliance calendar.
From a freelancer

Protected first, then paying less tax

I freelanced under my own name for two years, mixing everything in one account and hoping for the best. File.Business formed my LLC, set up business banking, and put my quarterly taxes on a calendar. When my profit crossed the line, they filed the S-corp election and I started keeping noticeably more. I should have done it on day one.
Independent designer
Full-time freelancer
LLC
liability separated from personal
Quarterly
taxes never missed since
S-corp
elected at the right profit

Representative composite based on freelancer outcomes. Nothing here is legal or tax advice; consult your accountant for your situation.

For the questions freelancers actually ask

Straight answers on LLCs, S-corps, and taxes

Should a freelancer form an LLC?
If your work carries any liability risk, or you simply want to separate the business from your personal life, yes. As a sole proprietor you and the business are legally the same, so a claim can reach your personal assets. An LLC draws that line and is inexpensive to form. See form an LLC.
When does an S-corp election make sense?
Once your net profit is high enough that the self-employment tax you save on distributions is more than the cost of running payroll and filing the extra return. The exact threshold depends on your expenses, your state, and paying yourself a reasonable salary, so we run your real numbers and file the election when it clearly pays. See S-corp election.
What are quarterly estimated taxes?
Because no employer withholds tax from your income, the government expects you to pay estimated income and self-employment tax four times a year. Missing the deadlines brings penalties. We put every quarterly date on your calendar so you can plan for them rather than scramble.
What is the tax difference between a sole prop and an LLC?
By default, a single-member LLC is taxed the same as a sole proprietorship, so forming one does not change your taxes on its own. What changes your taxes is electing S-corp treatment later. The LLC is mainly about liability protection first, with the tax election available once you grow.
Do I need a separate business bank account?
Yes, and it matters more than people think. Mixing business and personal money is one of the main ways the liability protection of an LLC gets set aside, and it makes tax time far messier. We set up a dedicated business account as part of formation. See business banking.
Do I need a DBA for my working name?
If you operate under a name different from your legal LLC name, most places require a DBA, or fictitious business name, registration so the public name is on record. We file it where your location requires. See DBA explained.
What about client contracts and my work product?
Once you have an LLC, your contracts should be signed in the business's name rather than your own, which reinforces the liability separation, and your agreements can address ownership of the work you deliver. We help you get the entity and its agreements in order so your contracts sit on solid ground.
Does this replace my accountant?
No, and this is not tax advice. A good accountant is worth it once your taxes get real, especially for S-corp payroll and your annual return. File.Business forms the entity, sets up banking, tracks quarterly taxes and renewals, and files the S-corp election at the right time, so your accountant starts from a clean setup. Talk to us.
Protected, and tax-smart as you grow

Stop being your own business

Form the LLC, set up banking, get your quarterly taxes on a calendar, and let us file the S-corp election the moment it pays. Start now, or talk with our team about your situation.

SOC 2 Type II · Not a law firm · State fees passed through at cost