ABSTRACT
All freelancers are essentially already running their own business, but most are not legally structured as such. In the United States there are several different legal entities that can be created, each with its own benefits and downfalls. In order to set up any of entities, freelancers will need to follow federal, state, and local laws, which may change over time. In other countries there are similar types of business structures and specific laws regarding business ownership and requirements. If freelancers are working as self-employed, sole proprietor, or in a partnership, and subsequently sued for any business reason, a claimant could take your personal assets to recover a court's judgment. Speaking of state and federal laws, business entity may need to adhere to certain laws and procedures in order to maintain freelancers business status. Required bylaws, board meetings, record keeping, unemployment fillings, and other documentation will suddenly be part of responsibilities.
