Over the next few weeks, we’re talking business. Make sure to check out my previous post on how to be a full-time creator prior to this post. Now that many of you are consistently earning as a creator, many of you have been asking about LLC and protecting yourself, and I’m ready to dive into it all with you! But let me first say: I am not an accountant, tax preparer or lawyer. I am more than happy to give you the information I’ve learned and collected over the years, but I am not an expert. I am a content creator, like you. So please make sure to do your own due diligence and talk to a professional! With disclaimers out of the way, let’s talk money. This week we are going to go over LLC’s, from deciding if you, as a creator, need to start an LLC for your influencer business and tips on filing as an LLC.
What is an LLC?
LLC stands for Limited Liability Company
Filling and creating an LLC is a relatively simple way to protect your personal assets and save money on taxes.
Why Do I Need Protection?
As a public face, especially when working with brands, you risk claims of false advertising, defamation, personal injury, copyright and trademark infringement, and breach of contract. Forming an LLC allows for liability protection. So if you are consistently making big money, partnering with big brands and considering this your job, making your business official may be a smart move for you. This way, your personal assets (e.g., car, house, bank account) are protected in the event you get sued.
Does this happen often? Of course not.
Could protecting yourself be potentially worth it? Absolutely.
Consider the amount of partners you take on and the number of followers you have. Also, how often brands whitelist your content for hundreds of thousands others to see.
Are There Other Perks To Being An LLC?
As an LLC, your business’ net income is then subject to income taxes and self-employment taxes. You also have the option to start an S-Corp when you form your LLC and reach an income threshold, and this can reduce self-employment taxes. It will also allow business owners to contribute pre-tax dollars to 401k or health insurance premiums.
How Do I Do File As An LLC?
These services also help you start that S-Corp, learn more and give you support through the whole process. I am not affiliated with either of these programs but know influencers have had great success with both of them.
Other laws and rules will vary State by State, but both services will be able to help you navigate it all.
I hope this helped and I can’t wait to talk ‘Prepping for Tax Season as An Influencer’ with you next week!