Based on your financial expertise, provide your response or viewpoint on the given financial question or topic. The response format is open.

Why would my job recruiter want me to form an LLC?
There are a few sites out there that can give you some reasoning behind the request. LegalZoom, for instance.  To quote the LZ doc in case the link dies: Employee vs. Independent Contractor If a worker is an employee, the employer is responsible for paying   Social Security, unemployment insurance, Medicare, and possibly other   costs like workers' compensation insurance for the employee; at the   end of the tax year, the employer is responsible for compiling all   necessary payroll reports, including W-2 forms. If a worker is an independent contractor, the employer is not   responsible for any of the above taxes or payments, and the only added   paperwork is the issuing of a 1099 to the independent contractor at   the end of the tax year, if he or she has made more than $600 with the   employer. As Kent suggested, you should speak with an attorney (really you need one if setting up an LLC). There are a lot of companies out there these days that try to classify people as contractors rather than full-time employees as it gets them out of paying benefits and dealing with taxes. This is being heavily cracked down on, and several "contractor" employees are winning lawsuits to get full-time status.  If you are truly acting as a contractor, then setting up an LLC can help with a few items such as taxes and protection on certain business aspects (see comments below regarding this). It's easy and relatively cheap (cost me about $250 with extra legal advice tacked on). If you are reporting directly to a manager with the company, or really working in any way that isn't consistent with the definition of a contractor, then I'd turn down the offer and ask to be made a FT employee.  Additional information: https://www.sba.gov/content/hire-contractor-or-employee