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hi I'm attorney Nate Gilbert in San Antonio Texas and a question that I get asked a lot is if I'm an independent contractor do I need to have an LLC and the answer is yes I emphatically very very much recommend that my clients who perform work as independent contractors have their own LLC Texas Workforce Commission evaluates whether individuals are employees or independent contractors based on several factors so where are they getting their instructions from how often are they required to work at the particular place of employment do they provide their own tools are they an independent business or individual all those sort of things it's not a you know check the box type thing it's more so what does the whole picture look like and if the whole picture has you as an LLC so the independent contractor if you are operating under your own business and the employer is paying you as a business and not as an individual that's a really big deal especially if that business is being contracted by other people or other businesses other times of the day or other days other weeks other months whatever it is you want to be able to prove to the Texas Workforce Commission that you are an independent contractor and not an employee and you also want to be able to have that autonomy to be able to tell the individual or business that hires you that you are your own separate business that you're not going to be wearing their uniform uh or taking their training or using their tools and equipment into buying by their schedules so you want to make sure that as an independent contractor you have your own LLC this allows you to actually prevent some liability as well if you're performing that work under an LLC there are several factors not even related to the Texas Workforce Commission that would that would make me recommend to an independent contractor that they have their own LLC tax benefits that you can have within S Corp election if that works for you and your financials there are benefits for liability protection we want to make sure that your business assets and personal assets are completely separated and we've got that taken care of with an LLC we could do corporations Partnerships all kinds of ways we want we can make sure that an independent contractor is adequately protected