Going freelance - I have a partnership LLC, but should I charge as a sole proprietor (or create my own LLC?)
Apologies if any of this is unclear, finances are not my strong suit. Due to circumstances out of my control, I'm having to dive to in headfirst.
Basically, I'm a video editor. The company I've worked for over the last year and a half full-time is (forcibly) transitioning me to a fully day play/freelance basis. During this time, I've also been picking up small freelance editing gigs here & there, unrelated to the company I've worked for.
Now that I'm going to be receiving individual 1099 paystubs from my previous employer, I need to figure out the best way to take advantage of my tax situation. Here's the kicker - I also own a video production company (LLC formed earlier this year) with a close friend of mine, and we've slowly been trying to pick up gigs through that. Traditionally, when I am getting paid for a video editing service that only I am involved in, I haven't funneled it through our LLC because it seemed cleaner that way. However, now that my main source of income is about to be through freelancing (both through my prior employer and other gigs), I'm wondering if I should send the money to my LLC and then pay myself income through that? Would that affect my business partner come tax season?
Any advice in this matter would be greatly appreciated. I feel so out of my depth when it comes to money & taxes.