How to Renew Your LLC as a Content Creator
We talk a lot here about how important it is for content creators to set up an LLC. This business structure sets you up to protect your personal assets and information. But an LLC isn’t a “set it and forget it” thing. But don’t worry, we’ve got the information you need on how to renew your LLC as a content creator and take care of this.
What is an LLC?
Before we dive into the renewal rules, let’s go over the basics of a Limited Liability Company, aka LLC. This is a business structure recognized by the IRS, but managed by the states. That means you will process your registration and your renewal with your state, and each state has its own requirements.
Most content creators have a single-member LLC, where they operate as a business but they don’t have other owners in the business. That allows them to continue to make decisions as if they were a sole proprietor but enjoy the legal and liability protections of a company. That’s why we love LLCs for the content creators we work with.
One question we get frequently is, do you get more deductions as an LLC? The answer is no. You get the same deductions as an LLC as you do as a sole proprietor. The biggest reasons for the LLC are liability and personal protection.
How do you renew an LLC?
Because your LLC is granted by the state you filed it with, you don’t need to file any extra renewal paperwork with the IRS. But it also means that the timing of your renewal, the information you need to supply, and the cost of filing the renewal varies from state to state.
Typically, your LLC is filed with your Secretary of State, and they will send you a renewal notice that lets you know the information you need to provide, the due date, and the amount you need to pay. If you don’t receive that notice, you can easily look up your LLC on the Secretary of State’s website and renew it directly there.
In general, you’ll need to renew your LLC either once a year or once every two years. Most states require you to file an annual report or a statement of information that includes information about you, members of the LLC, any registered business agent you’ve been working with, and other information about your business. (And yes, we know that you’re likely to be typing your own name in each of these spots on the form. It may seem weird, but your state just wants accurate information.)
The cost to renew the LLC also depends on the state. Generally, it costs about $150-$250 to renew the LLC, although some states like California cost $800+.
This annual renewal process usually takes less than 5 minutes. So put a reminder on your calendar on January 1st to get that taken care of right away.
What happens if you don’t renew your LLC?
If you miss the renewal deadline, you might need to pay penalties and fines. If you go too long without renewing, your state may dissolve your LLC, which might require higher fees to get it reactivated. Also, if your LLC is dissolved, you lose the protections that your LLC offered.
Conclusion
We know that paperwork isn’t the part of your content creation business that you’re excited about. But LLC paperwork is an essential part of running your business and it’s not too overwhelming. If you don’t want to hassle with that part of your business, we’ve got you. Book a call so we can walk you through the entire process so you can get back to the part of your business that is exciting.
