Llc Requirement For Freelancers

Summary

Requiring a freelance copyeditor to form an LLC is generally legal as a business requirement. Extortion involves unlawful threats or coercion, which does not apply here. If you wish to challenge this or explore alternatives, consult a local attorney for guidance.

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I am a freelance copyeditor (sole proprietor) living in South Carolina. I work for an ad agency in Illinois. The agency informed me last week that I needed to have an LLC by May * or I would be terminated. Is this extortion?
It does not appear to be extortion. Extortion typically involves threats of harm or coercion to gain something unlawfully. Here, the agency is making a business requirement for you to continue work, which is generally legal.
If you want to challenge this, you could consult a local attorney to explore options.