# Independent contractors and new U.S. tax law

I make about $70,000 a year working as a contractor. Currently, I operate as a sole proprietorship. I invoice my clients using my personal name (I don't even have a business name), and they pay me via checks that I put into my personal bank account. At tax season, my clients send out 1099-MISC forms, with their payments to me recorded in box 7. I report the income on a schedule C when I file my taxes. My question is this: Would I be likely to see tax savings if I formed an LLC and invoiced my clients through the LLC instead of having a sole proprietorship? If my understanding of the new United States tax law is correct, I would, because my LLC would be taxed at 21 percent. Under my current sole proprietorship, income from my contract work is taxed at the personal rate, and most of my income falls into high tax brackets (particularly because the ~$70k I make per year in contract work is in addition to W-2 income from a full-time job).

I'd be grateful for clarification on this. I'm trying to wrap my head around the new tax law and what it means for LLCs. (I'm wondering if an LLC is not enough, and I'd instead need to form an S-Corp or something to take advantage of the lower tax rate for business.) It's very confusing.