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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.
1/11
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.
1/11
Just so we& #39;re all on the same playing field here, if you& #39;re not familiar with what an LLC is: it& #39;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& #39;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& #39;s a debt owed.
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You& #39;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& #39;ve put forth the time and research. Consider it a leg up on your competition.
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There& #39;s also some tax benefits. After you& #39;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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You should talk to a tax professional for this.
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Depending on the state you& #39;re filing with, prices for forming an LLC can vary. Legal Zoom is an *ok* option for just starting out - but I& #39;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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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& #39;m not a US citizen?
You don& #39;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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You don& #39;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 & #39;write off& #39; 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& #39;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& #39;s lots of benefits to an LLC out there - be safe & always on the offensive.
What else comes to mind?
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There& #39;s lots of benefits to an LLC out there - be safe & always on the offensive.
What else comes to mind?
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