Opinion on LLCs for 1099 Independent Contractors

This question is for current or former 1099 BIs who operated an LLC while working as a 1099 IC.

What form of LLC (S Corp, Single Prop, etc) did you use?
Why did you chose that format vs the others?
Were/are the benefits really worth it?
What tips would you offer a beginner like myself?
What pitfalls are out there that a beginner like me might not be aware of?

I just finished the NIT/NTS training and will recieve my DoD and DIA creds soon (can’t work DHS contracts yet since I’m still employed with DHS) and plan to begin working DoD contracts before I retire and then add DHS after I do retire.

I have an appointment next week to create my LLC, so this groups input will be greatly appreciated.

Chadwick “CW” Cotner

Depending on your state, you probably don’t need an attorney to set it up— for some states it is very easy to set one up online. I think sole proprietor is probably the most common form for BI’s.

Is it worth it? Who knows. Probably a good idea (along with an umbrella personal liability policy), especially if you have substantial personal assets. Costs for both can be written off as business expenses.