10 reasons why you need an LLC as a creative

I had a lot of designers reach out to me regarding my post the other day with LLCs.

Be sure to RT for your fellow creatives.

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Just so we're all on the same playing field here, if you're not familiar with what an LLC is: it's a limited liability company that operates as an entity formed @ state level. Not necessarily as complex as an S or C corporation. An LLC offers you flexibility & protection.

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Under an LLC, you're not personally responsible for any debts or legal liabilities related to your business. This means that clients/brands cannot come after your car, house or other personal assets if there's a debt owed.

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You're a bit more credible. Personally, it sends a message loud and clear to me when a freelancer has taken the time to form an LLC. They have their shit together, they've put forth the time and research. Consider it a leg up on your competition.

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There's also some tax benefits. After you've accrued some significant revenue, you can elect to be taxed as a corporation or a pass through entity. That means your profits can be passed through to your personal tax returns.

You should talk to a tax professional for this.

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Depending on the state you're filing with, prices for forming an LLC can vary. Legal Zoom is an *ok* option for just starting out - but I'd highly recommend @stripe Atlas. Great benefits are included, alongside your documentation for getting started.

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Optional (recommended): get a registered agent in your state. A registered agent is a place of business that will accept official mail on your behalf. Take time to research if a RA will send you digital/scanned copies of your mail. No more listing your residential address.

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Treat your $$ differently. Setup a business checking account, that way you can keep your business/personal finances separate.

You never know where this could take you, so plan for success here. Pay yourself a "check" through your LLC.

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What if I'm not a US citizen?

You don't need to be. Form your LLC in Delaware. Delaware is welcome in *almost* all parts of the world. It might be best for you to look into a single member LLC - a disregarded entity for US tax purposes & may not require a tax return.

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LLCs also have the ability to 'write off' certain expenses on their taxes. In short, this reduces the amount of taxes owed by reducing your taxable income. This includes paying for equipment, subscriptions, meals, entertainment & much more.

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Last but not least, I'm not a tax expert by any means. You should do your research first and consult with a tax professional before making any decisions.

There's lots of benefits to an LLC out there - be safe & always on the offensive.

What else comes to mind?

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