<prompt> Human: If so, what are the benefits and how substantial are they? Is it worth the extra administrative work? And can anyone point me to a good resource to help me make sure I cover all my bases if I take this approach?Any help is very appreciated! Im new to this!For a bit more background... A friend who came accross some money inheritance contracted me to help him build out a software company Im a software engineer. He is contracting me starting in 1 week for a period of roughly 6 months. The contract stipulates certain equity assignments to each of us if we are at a specific metric at the end of my contract. Since I have never been an independent contractor before, the process of learning everything involved has been quite a task. Ive been inundating myself with knowledge of the tax laws Im also new to taxes because Im young, insurance, retirement investing, etc... I spoke to a CPA about all the tax requirements and considerations but she did not mention forming an LLC as being potentially beneficial. Thanks in advance to any advice!Also - last time I posted a question on here, I got a couple responses giving me shit about not going into details about the product. When I jokingly said Because I dont want people stealing my ideas, I got more shit for being all talk and because my ideas have no value, accompanied by some quote from a Founding Father about the uselessness of ideas without execution or something along those lines. As I mentioned in that post, I dont need to go into details about that stuff bc we already have a product being used and tested by end users. Im good on the producttechnology side. And that has nothing to do with my questions. Anyway, sorry about that little rant, just didnt want to have to explain that in the comments.  <response>: You are taxed the same in an LLC as you are if you are just 1099 as contractor. LLC gives you some liability protections as long as you separate you personal finances from your LLC. 