Also I will say that there are many different situations and people have different wants and needs. I am not trying to make a blanket statement that "this is the best way for everybody". Look at it this way: In general, as a regular employee, one will get paid less, may pay more taxes depending on how they structure themselves and how informed they are, will show more income, will get the security of comp/disability, and will pay into social security/medicare for later (hopefully). Some people like those features and thats fine. IF you were in a situation where you were offered to be a member of an LLC and get paid directly with no deductions, you would take home quite a bit more, you will likely pay less taxes, you would show very little income, you would not have or would be responsible for your own comp/disability, and you wouldnt be paying much into SS/MC. Personally Im not much into govt slush and programs and prefer to take responsibility for my own future finances. I also want to pay off my mortgage as soon as possible and get out of debt - Im not big on the 30 year plan. I Want as much money now to do this and am willing to take a little more risk to get ahead. Thats just me, and I am glad that I am informed enough to know that I have that option. If I were to need help on a job or even need a full time guy, I would bring a guy into the LLC - its perfectly legal and is just so much easier for me.