Wife has LLC from contractor role, should I use it or set up my own?

[Radioherd88]

Hi All,

Kinda unique scenario - my wife went contractor last summer and set up an LLC just in her name as the liability piece was more important for her role.

Now, I'm also switching to contractor role and have the following options:

1. Just get paid as "myself" - don't put it through and LLC
2. Start a new LLC so we have 2 and get paid through that
3. Add myself to my wife's LLC and get paid through that

Is there a particular advantage to adding another LLC or really not worth the hassle in this case?

[Radioherd88]

Ok looks like I stumped everyone for the first time ever on here :)

Ultimately what I am asking is, is there any real benefit in being paid through an LLC versus just being paid as myself (other than the personal liability aspect), which i don't think applied to me in this case....

Anyone have similar LLC/contractor scenarios?

[Smokystache]

I certainly am not an authority on this topic ... other than I choose to currently operate as a sole-proprietor. I personally think that the push to incorporate because of the threat of lawsuits is vastly overstated for most consultants/side-hustlers/etc (I think it gives lawyers and others something to write about and charge for). Without question, there are some industries and specific tax situations where it is warranted and wise.

[bacchi]

I've had certain employers insist on a company, even if it's a disregarded entity, in order to maintain the illusion of an employee-contractor relationship. You'll also need an EIN for a solo 401k.

[Radioherd88]

Yes - i'm not really seeing any benefit (unless my employer requires it) - as i can still get the EIN as a sole prop for a solo 401k - so unless someone says something in the next couple days i think that's the way i'll go