What are the ramifications of starting a LLC for freelance work in Michigan?

I am a software developer who is, at the top of my work day to day, doing freelance web development work. I have been advised by another developer in this project which should start an LLC for me and for the customer to pay my fee (payment for development work) to the LLC rather than me personally. I live in Michigan (where start an LLC is a relatively simple process.) What are the advantages and disadvantages of starting a LLC for this purpose? While I do occasionally do work out, is not an important source of income (and, In fact, I've never needed to claim any work out of my taxes because most of what I do is pro bono, this project excepted).

If kept clean paperwork, the main advantage of an LLC as an operator alone is the ability to protect your personal assets (savings home, etc) from any potential liability of your business. If the company is sued and is an LLC, the recovery is limited to the assets of the LLC. If you remain a sole proprietorship, a lawsuit can wipe out all personal property. With a single member LLC that is treated the same as a sole proprietor of the purposes of federal income tax, so nothing changes on this front. To receieve benefits limitation of liability of an LLC, however, you need to keep your documents up to date with the Secretary of State, has a bank account separately, and keep your business and personal expenses separate. (If you spend on a personal credit card, use an expense report that the company reimburse you.)

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