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Freelancing: Using my own name vs. Creating a business name

What are the disadvantages and advantages of using my own name vs. creating a business name?

Answer 13509

Incorporating is about limited liability first and foremost. The rest matters very little in practice.

Without registering a business, a disgruntled client can potentially sue you for lots and more. With a business, the worst case scenario is you lose whatever money is in the company.

Answer 13525

Two main reasons when deciding to incorporate are:

1. Legal protection

2. Income and tax implications


However, you should consider any implications regarding the type of structure you ultimately decide to take advantage of (LLC, S-Corp, etc)

Do know though that if you decide to forgo establishing a legal entity, that setting up a DBA ("doing business as") will NOT shelter you from any legal implications with your clients.

For just sheltering your self from legal issues I would strongly advise for registering a legal entity, this will provide protection from personal liability.

Answer 13508

Using Your own name pros are:

  1. Helps improve your rep/credibility as you complete each freelance project for client.
  2. Helps you market and brand yourself much better.
  3. Easier to get employed that way.

Cons:

  1. You might have to do free work if you’re new kid on block and no one knows who you are to build up your portfolio.
  2. Most companies or contractors look for teams whether than individuals.

In my opinion I would recommend freelancing as business name because most individuals and business love working with teams instead of individuals because they can get much more done at faster pace. Also, creating a business name and incorporating yourself might also protect you from liability.

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