Freelance to Founder Sole–Proprietor or LLC?
Aug 28, 2025
Molly Cox, a proposal writer and editor specializing in federal contracting, discusses her early freelance journey. She deliberates whether to stay a sole proprietor or form an LLC, emphasizing the significant tax savings that could result from this choice. Molly shares her insights on pricing strategies, advocating for value-based fees rather than hourly rates. The conversation also touches on the intricate realities of freelancing, including client management and the importance of liability insurance as her business evolves.
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Price For Outcomes, Not Hours
- Stop charging by the hour and price around the outcome instead of time.
- Set flat fees so you never get penalized for being efficient and capture the true client value.
Set A Simple Minimum Fee
- Use minimum flat fees to remove math and guarantee baseline revenue.
- Require a clear minimum so short or light engagements still pay you fairly.
Keep Pricing Simple To Reduce Friction
- Avoid making clients do math in your pricing; keep offers simple and frictionless.
- Do the revenue math yourself and present a single clear price to the client.