As your brand grows as an influencer, there may come a time when you need to make tough decisions regarding your business, like deciding whether it is time to register your influencer business as a limited liability company (LLC). However, before making this decision, it is crucial that you understand what this option can mean for you. In the below guide, we will walk you through everything you need to know about LLCs and the benefits they can provide your business.
What Exactly Is an LLC?
A limited liability company is a business structure in the United States that protects its owners from personal responsibility for their liabilities and debts.
These types of companies are generally hybrid entities with some of the same characteristics as a corporation and a sole proprietorship or partnership. For instance, protecting its owners from personal liability is a similar feature to a corporation, while the availability of having flow-through taxation to its members is a type of feature that partnerships have.
What Are the Benefits of Having an LLC as a Social Media Influencer?
If you are considering an LLC but are still determining if it is the right option for you, it may be a good idea to first understand what benefits you can obtain from setting up an LLC.
Can Help Protect Your Personal Assets
Having an LLC provides you with limited liability protection. What does this mean exactly? It means your personal assets, such as your home, bank account, and even your car, can be protected if your business gets sued or defaults on a debt.
Influencers especially can significantly benefit from this protection as this type of business often deals with defamation issues, false advertising, and breach of contract.
Can Help With Your Finances and Taxes
Having an LLC can also help your finances and provide you with numerous tax benefits, including the following:
- Makes it easier to obtain debt financing and equity
- Can help you secure small business loans
- Allows you to take advantage of the tax benefits that are often associated with being self-employed
Working with a financial professional can further help you explore these benefits and how having an LLC can impact your business.
Can Help Establish Trust
To get ahead in social media, influencers usually have to improve credibility to build and maintain a business. That is why many influencers choose to form an LLC because it helps gain consumer trust, allowing them to take their business to the next level.
Contact Ardent Guardian To Learn More About Your LLC Options
If you are thinking about forming an LLC but want more information regarding this process and the benefits it can provide your influencing business, contact Ardent Guardian today or call us at 703-592-6774.
As a Certified Financial Planner, CPA, and lawyer, we can help you with all your business and legal needs, especially when it comes to creating a strategic plan for the future, ensuring your business endeavors are taken care of, and that your personal and professional objectives are met.