Looking at a short-term consulting gig and have some questions for the Hive Mind

[davisgang90]

Looks like I'm going to be hired by a law firm representing a big name aerospace contractor to act as an expert consultant for a contract protest.  I will be working mostly remotely reviewing various documents from all sides and giving my "expert" opinion.

My question for the collective hive mind is regarding setting up an LLC.  I've never worked in this role before and the guy who recommended me for it, said I might look into an LLC just on the extremely remote chance I could get sued. 

I'm fine with setting up a basic LLC and might actually have a use for it down the road if this type of thing continues or I could use it if I decide to take my photography hobby on as a paid gig.

Any guidance from those that have worked in a situation like this?  Legalzoom.com Ok?

Any other things to be concerned about?

Thanks!

[Fru-Gal]

Have never set up an LLC because in my state it's additional annual taxes and am not in an industry where most feel the need for it but one client required me to have additional small business insurance -- you could look into if that would be sufficient coverage.

[katsiki]

I can't comment on if this is needed or a good idea, but you can likely setup the LLC yourself easily.  It is pretty easy in my state and others (from what I have read).  If it is more complicated or not worth your time, I would think legal zoom would be a fine option.

Hope this helps some!

[terran]

Absolutely get legal council on this rather than listen to internet strangers, but what I've been told is that if you're the only person working for an LLC then you personally can be sued just as easily as the LLC can be sued. This changes when you have an employee who could do something negligent that might cause the business to be sued, or probably if the LLC owned property that could cause injury (real estate in an LLC probably still makes sense), but for a consultant personally providing services there's little if any protection. I could be misinformed so this "legal" advice might well be worth what you paid for it. Worth asking whoever you talk to about it though.

[CowboyAndIndian]

Get the LLC. Absolutely useful. Do not get an S-Corp as the tax/income-tax filing is onerous.

My CPA charged $500 to set it up. I had to start really fast and did not have the time to do it myself. Worth the $500.

The hardest thing was to come up with a name. You cannot believe how many names you think are unique are already taken

[Ready2Save27]

An LLC will also give you tax benefits since you’d be doing this consulting work as a business instead of an independent contractor. I think it’s worth it to get the LLC set up. It’s pretty simple to do yourself online (at least for my state).

[davisgang90]

Thanks to all for your insights.  Still waiting to get the final offer, but I think I'll do an LLC.

[Spitfire]

It's true that forming an LLC does not protect you 100% from being sued personally. For taxes, a one-owner LLC is treated the exact same as not having one (you will fill out Schedule C on form 1040). You can deduct business expenses either way.

Random side benefit, if you are into this, is that you can start churning business credit cards and getting bonuses.

It was easy for me to set mine up in Florida, but I am CPA and may be taking my knowledge for granted.