When should I switch from being a freelancer to an LLC or S-corp?

Two things usually drive the move: liability and taxes. Forming an LLC creates a legal separation that can protect your personal assets if the business is sued, and many freelancers form one early just for that protection plus a more professional image. The S-corp question is about tax savings and tends to make sense once your net profit is consistently high — often cited around $80,000–$100,000+ — because an S-corp lets you split income into a "reasonable salary" (subject to payroll tax) and distributions (which aren't), potentially saving on self-employment tax. But an S-corp adds payroll, separate filings, and accounting costs, so the savings must outweigh the overhead. There's no universal threshold; run the numbers with a tax professional. Many people start as a sole proprietor, form an LLC as they grow, then elect S-corp treatment once profits justify it.