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LLC makes sense if you're worried about potential downside from your consulting arrangements -- e.g. how much are you on the hook for if you fail to deliver? LegalZoom or RocketLawyer is probably fine for getting set up initially -- talk to an actual lawyer if you end up hiring someone or subcontracting work out to people.

Talk to accountant about tax hassles with LLCs.



Sadly though, for us Canadians there is no LegalZoom or RocketLawyer (although I might be totally wrong on this one!)

So its either like a few thousand to setup an INC (LLC's don't exist here) or go the cheap but high liability route with a sole proprietorship.




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