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Self-employment may be on the rise in the United States. The rate of self-employed workers, per the Bureau of Labor Statistics, has held steady at around 10% for several decades, but the number of people working for themselves full time has risen by 6.5%, according to the 2024 MBO Partners State of Independence in America study survey. Younger workers, in particular, have been increasingly drawn to self-employment as a side hustle or full-time alternative to traditional employment.
But according to 2025 BLS data, nearly 60% of self-employed workers are unincorporated, which could leave them legally and financially vulnerable.
As the trend of self-employment continues to grow, independent workers must have access to the business tools and protections small businesses and corporations have had for ages. But they often can’t afford to hire an attorney and accountant to help them navigate their options.
Forming a limited liability company (LLC) is a simple way to protect yourself legally and financially when you’re self-employed—and Formations LLC is making the process easy and affordable for independent workers and small businesses.
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Easy and Affordable LLC Formation
Formations by Forbes Advisor guides you through the process of registering a business with your state and getting the licenses and tax IDs you need to get up and running. You can register online for free or at a low cost and get:
- LLC articles of organization and state filing
- A federal employer identification number (EIN)
- Ongoing registered agent services
- Operating agreement
- Curated business compliance documents
- Formations SmartBooks Bookkeeping
“Formations is the complete company formation platform for entrepreneurs to start, manage and grow their businesses,” said Mrinal Murari, head of product for Formations.
Make Your Business Official
Forming an LLC is a way to professionalize your business without the complexities of forming a corporation. This is a particularly wise option for small businesses, freelancers and consultants, who will benefit from the protection of an LLC but don’t need the functionality of a corporation.
Individuals can register an LLC for themselves with their state or hire a business attorney to handle it. The benefit of using an LLC service such as Formations is that it ensures no steps are missed and that businesses have all the documentation they need to comply with state and federal regulations from the start. Plus, the streamlined online service comes with a much lower price tag than hiring an attorney and an accountant to manage the process.
However, the service doesn’t sacrifice quality for that lower price tag.
“Every business formation undergoes thorough expert review before state filing, and if you’re not completely satisfied with your business setup, we offer a risk-free money-back guarantee of our service fees,” said Murari.
How Forming an LLC Can Protect Your Assets
Forming an LLC limits your legal and financial liability by creating a separate entity for your business. Even if you’re a single freelancer or consultant and don’t plan to hire employees, forming an LLC can offer some protection for your personal assets against lawsuits and debts.
An LLC could even help you save money on taxes. This type of entity has the option to be taxed as an S corporation, which can reduce your payroll tax bill.
Bottom Line
Finding independent work is getting easier and more common, but workers need to understand the risks of striking out on their own without setting up legal protections between themselves and their businesses.
Setting up a business entity that limits your liability doesn’t have to be an intimidating or expensive process. Formations guides business owners through the process and gives you everything you need to get up and running—and get back to work.
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