An LLC gives freelancers a reputation boost and liability protection. LLCs do come with startup and ongoing costs, additional rules, and slightly more accounting.

Freelancers have several options when it comes to choosing the right business structure or “entity” for their needs. Each type has its own overheads, rules, tax implications, and filing requirements. It’s helpful to understand the impact of each before starting your new freelance business.

Freelance business license requirements vary depending on where you live and what you do. Some freelancers won't need any type of permit at all, while others will require licenses from their city, state, or professional body.

In many cases, you can do freelance work while you’re employed, and it can be a good way to see if freelancing is right for you. But, it’s also important to check your employment contract, get the go-ahead from your boss, and make sure your freelancing doesn’t affect your regular work.