If you’ve been getting paid as a freelancer, gig worker, or creator without registering a business, you’re technically operating as a sole proprietor.
It’s the default structure when you work for yourself—but that doesn’t mean it’s the best long-term choice.
What’s a sole proprietor?
You use your personal name, SSN, and bank account
You’re personally responsible for everything—taxes, contracts, debt, risk
No paperwork required to start, but no separation between “you” and “your business”
What’s an LLC?
You create a separate business entity
You get an EIN (instead of using your SSN)
You protect your personal assets from business risks
You can open a business bank account
You unlock more tax benefits and legal protection
The key difference: liability
If something goes wrong—a dispute with a client, a chargeback, a tax issue—as a sole proprietor, it’s you on the line. Your savings, your car, your credit.
With an LLC, your business takes the hit—not your personal life.
Taxes are simpler, too.
Both structures can use WorkMade to automate everything. But once you have an LLC, you’ll be eligible for more write-offs, cleaner books, and better separation between personal and business money.
TL;DR: Sole proprietor = easier to start.
LLC = safer, more professional, and built for growth.