JackieBlue - 5:02 pm on Mar 12, 2012 (gmt 0)

LLC separates your business and personal but the income is still pass through. After your LLC is formed, you can still tax file as an S-Corp (which an LLC can be too) and then you are an employee and you run less into tax issues. There are not that many tax advantages (IMO) when you are small - except you can take some expenses as business expesnes and get mileage reimbursement.