If you are a content creator growing your audience, landing brand deals, and earning money from your content, congratulations! That’s a huge accomplishment! The big question is: are you protecting that success and limiting your risk as a creator?
You’re running a business, and as the business owner, you are liable for all the money you make. Whether it is a subscriber, sponsor, or brand, if you were ever to get sued, your personal assets, like your house, car, and personal bank account, are at risk.
An LLC (Limited Liability Company) separates your personal finances from your business finances. While that’s the biggest benefit of an LLC there are several other perks that make LLCs for content creators essential.
Let’s break down why every influencer, streamer, YouTuber, blogger and content creator should have one.
What Is an LLC and Do Content Creators Need One?
An LLC is a type of business structure that separates your personal assets from your business activities. Think of it as a shield that keeps your personal finances safe if anything goes wrong in your creator business.
For example, if a brand disputes a contract or a client payment becomes complicated, your LLC ensures that only your business is liable, not your personal bank account.
It is also one of the first signs that you are taking your content career seriously. That’s something brands and sponsors notice.
The Benefits of an LLC for Creators
- Legal Protection
Your personal assets are protected. Your savings, car, and home are separate from your business. If a person or business were to sue you, they can only go after your business assets.
- Legitimacy with the IRS
The IRS recognizes you as a legitimate business owner, not a hobbyist. If the IRS were ever to see your work as a hobby, you wouldn’t be able to take all of those write offs that lower your tax bill. With an LLC, your business expenses and tax deductions hold more weight.
- Professional Credibility
Brands prefer to work with registered businesses because it simplifies contracts and payments. Having an LLC makes collaborations smoother and often leads to bigger opportunities.
- Easier Business Setup
Once your LLC is in place, you can get an EIN (Employer Identification Number). This lets you open a business bank account, apply for credit, and keep your creator business finances organized.
LLCs and Taxes for Influencers and Content Creators
Many creators believe forming an LLC will lower their taxes automatically, but that is not true. An LLC is a “pass-through entity,” which means your income passes through to your personal tax return. You still pay state and federal taxes where you live.
However, having an LLC as a content creator allows you to choose additional tax structures later, such as filing as an S Corporation, which can lead to significant tax savings once your income grows. We typically recommend filing as an S Corp when you start earning $120K a year.
How to Start an LLC as a Content Creator
You can form your LLC yourself or let Cookie Finance handle it for you. We take care of:
- Filing your formation documents
- Registering your EIN
- Acting as your Registered Agent for privacy and compliance
Open a business bank account*
With this setup, you are not just running a social media account; you are running a business.
Build Your Foundation
Your creator financial toolkit starts with forming your LLC. It is the key to protecting your income, growing your credibility, and unlocking smarter finances for content creators.
Cookie Finance helps creators make their businesses official so they can focus on creating. Start your LLC today with Cookie Finance. Sign up for Creator Business Essentials today!
*Disclaimer: Cookie Finance Inc. is a financial technology company and is not a bank. Banking services are provided by i3 Bank, Member FDIC. The Cookie Finance Visa Debit Card is issued by i3 Bank pursuant to a license from Visa U.S.A. Inc. and may be used anywhere Visa cards are accepted.