Should I Start an LLC for My Social Media Influencer Business?

What are the benefits for influencers and content creators forming an LLC? 

Any business that with risk should form an LLC to protect its owners from liability. This means that in a legal issue, creditors cannot come after the influencers personal assets, only the assets of their social media business. Additionally, there can be tax benefits when using an LLC for a social media influencing or content creation business. Establishing an LLC gives the influencer more legitimacy in negotiating deals and sponsorships. This business structure can be more appealing to corporations and companies interested in partnering with influencers. Finally, an LLC can help an influencer to protect their brand. When the LLC is registered under a specific name, no other entity in the state can use that same name. Establishing an LLC can help the influencer protect their other intellectual property as well, such as trademarks and copyrights. 

What are the tax benefits and implications for an influencer filing as an LLC? 

An LLC is considered a pass through entity for taxes. This means that an influencer can file taxes on his or her personal tax return, similar to if he or she was filing as a sole proprietor. With an LLC, the influencer can avoid double taxation which he or she would be subject to as a corporation. An LLC also helps the influencer to make deductions for business expenses on their tax returns. Influencers and content creators should consult with an accountant to determine the deductions for which they are eligible. 

How do I start an LLC as an influencer? 

In order to begin an LLC, the influencer will need to choose a name for their company. The influencer will then need Articles of Organization to register the LLC with the state and pay the filing fee. Influencers starting an LLC will start a single member LLC with themselves as the only member, which allows them to pay tax on their personal income tax return like a sole proprietor. The influencer will have to choose a registered agent to file its Articles of Organization. The LLC will also need an operating agreement to describe the functions and processes of the LLC.  Once the LLC is formed, the influencer will need to maintain it by keeping up with annual fees and filing requirements. Influencers can hire a corporate attorney to help them with the steps of organizing and filing their LLC.

EPGD Business Law is located in beautiful Coral Gables. Call us at (786) 837-6787, or contact us through the website to schedule a consultation.

*Disclaimer: this blog post is not intended to be legal advice. We highly recommend speaking to an attorney if you have any legal concerns. Contacting us through our website does not establish an attorney-client relationship.*

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Eric Gros-Dubois

Founding partner Eric Gros-Dubois established EPGD Business Law in 2013. With over a decade of experience expanding the firm and leading it to its current success, Eric now primarily manages the corporate division of EPGD. Given Eric’s educational background, holding both a JD and MBA, combined with his own unique experience of starting a business from scratch and growing it to a multi-million dollar firm, he brings a specialized and invaluable perspective to those seeking legal assistance for themselves and their businesses. Having now instilled his same values in our team of skilled corporate associates, Eric leads a firm that is always ready, willing, and equipped to handle any and every legal matter that a business owner may have.

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