Hello, I'm Shannon Marie. 

I'm a Brand Expert, Entrepreneur, Content Creator, and World Traveler with 15+ years in Product Development + Brand Strategy, including NIKE, INTEL & GAP. I'm here to share insights with Brands & Creators to build and scale your business.

To be Creator is to be a brand, and to be a brand is to build a business.

So, should you form an LLC or not?

7 years ago, when I decided to start my first fashion development business, I had to ponder this same question.  I did a ton of research, met with my CPA, and decided to commit to building my business, starting as an LLC. 

As a serial entrepreneur, it was one of the best decisions I made in establishing and scaling my businesses.

I know, I know. Right now, your focus is on creating great content and closing as many paid collaborations as possible before the year ends. I get it!

But, as you look to the New Year, there are a few things to keep in mind as you start or scale your creative business.  

Most Creators start out as sole proprietors, but at a certain point, you can benefit greatly as a business owner by forming an LLC.

Let's ensure you're not missing out on some BIG business advantages going into 2023.

So how do you know if forming an LLC is right for you and your business?  Let's discuss what it is first. 

What is an LLC?

LLC stands for limited liability company. It is a business structure that combines the liability protection of a corporation with the tax advantages of a partnership or sole proprietorship.

An LLC is a separate legal entity from its owners, called "members" The members of an LLC have limited liability, which means they are not personally responsible for the debts and obligations of the business. This means that if the LLC is sued or incurs debt, the member's personal assets, such as their homes and bank accounts, are generally protected.

LLCs are relatively easy to form and maintain by filing articles of organization with the appropriate state agency and obtaining a state-issued operating agreement. State laws govern LLCs, so the requirements for forming and operating an LLC may vary from state to state.

In short, an LLC is a business structure that offers limited liability protection and taxation benefits.

If you were forwarded this link, JOIN our community for FREE! 

The 3 Biggest Benefits of an LLC for Content Creators

Now that you understand what an LLC is and does, it’s time to talk about the benefit of forming an LLC.

1) Tax Deductions + Credits

As a content creator, you may be able to claim deductions for certain expenses that you incur as part of your LLC business. LLCs can be taxed as a partnership or a corporation, which can provide tax benefits depending on the circumstances. These deductions can help lower your tax bill by reducing your taxable income.

Some key deductions may include the following:

Business-Related Equipment and Supplies: If you purchase equipment or supplies that you use specifically for your business, you may be able to claim a deduction for those items. This includes such items as computers, software, cameras, microphones, ring lights, studio equipment, or other tools you use to create your content.

Travel and Transportation Expenses: if you travel for content creation business, you may be able to claim a deduction for your travel expenses. These might include airfare, rental cars, and meals while traveling. So if you’re already a travel content creator or thinking about becoming one, this is a HUGE advantage!

Home Office Expenses: if you use part of your home exclusively for business (which I know you do), you may be able to claim a deduction for home office expenses. This could include a portion of your rent or mortgage, utilities, internet, office furniture, and other costs related to maintaining your home office.

Professional Fees: If you use professional services such as business coaching, content coaching, legal advice, or accounting, you may be able to claim a deduction for these fees.

PRO TIP: Invest in YOURSELF this year and hire a coach to take you and your business to the next level. If you have an LLC - it's tax deductible!

 2) Business Credibility

Want brands, clients, and collaborators to take you more seriously? Want to start showing up and differentiating yourself from other creators as a professional?

Forming an LLC can lend credibility and professionalism to your business and shows you are a serious solopreneur.

Forming an LLC requires a formal process that can show potential customers and partners that you are serious about your business.

It can help establish your business as a separate entity: An LLC can help establish your business as a separate entity, which can be important when it comes to building a professional reputation and attracting clients and partners.

Overall, forming an LLC can add credibility and professionalism to your business by showing that you have taken the necessary steps to protect your personal assets, take your business seriously, and are committed to building a professional reputation.

3) Increased Income + Growth

 After forming an LLC, you have the potential to increase your income and really grow and scale your business in ways you could not before.

Because you can now take advantage of tax deductions, tax credits, and other financial benefits, your overall income can increase.

If your business is successful, you may want to bring in additional owners or investors. An LLC can facilitate this by allowing you to issue ownership interests in the form of "membership interests," giving you the ability to grow and scale right out the gate or later down the road.  

Next Steps

Now that you are more informed about LLCs and how they can benefit you and your creative business, take some time to research to learn more details about ALL the benefits and how to form an LLC in your state, territory, or country.

PRO TIP: It's worth researching how the LLC benefits vary by state to help inform which state you may want to form your LLC in. 

In the US, you can easily apply on your local secretary of state's website. It's typically around $100 USD and is active within 48 hours!

It is important to note that forming an LLC is not the right choice for every business, and you should carefully consider your options before choosing a corporate structure. Consult with an attorney or other professional to make the best choice for your business.

Have a topic or burning question? DM me on Twitter, and I will include it in a future post!

Was this helpful?  Subscribe for FREE insights like this + more!