Social Media & Influencers – Limited Liability Company Legal Setup
Are you an influencer or a content creator online?
If the answer is yes, are you sure that you are operating in full legality? LegalBison is only one call away to assist you on the tricky legal side of the matter.
- Forming an LLC for content creators
- Assistance with opening a bank account
- Drafting the required legal documents
- Ongoing legal support and assistance
Common services for LLCs and their regulation
Whether you film videos for TikTok or create content for Instagram, YouTube, or any other social media, consider this page your ultimate guide to taking your activities to a whole new professional level. If you want to grow as a content creator and attract an even larger flow of followers, here are a few things you need to know.
For starters, is content creation a business and does it make you an entrepreneur if you simply like posting content online? The answer is yes, it can be a business if you monetize your content and gain actual income from it. In that case, do influencers need an LLC? It depends on what you sell, how you sell, and how much you are getting from it.
In short, offering services as an LLC is not always the optimal solution. Below, you will find the main legal guidelines for content creators in 2025 prepared by a team of professional lawyers.
- Selling under a sole proprietorship
- Starting an LLC
- Obtaining a bank account
- Legal documents
Selling under a sole proprietorship
Content creators who are just taking their first steps often conduct business under a sole proprietorship. Working under a sole proprietorship does not require any legal settlement in the first place. However, there is a catch: sole proprietorship is extremely limiting and usually works only for a short time and for small influencers who are not seriously engaged in content creation.
In addition, selling goods and services under a sole proprietorship incurs personal liability, which means that you will have to bear all the expenses in case of a failure. This is a huge financial responsibility that many beginner influencers are not ready to bear. Henceforth, forming an LLC is advisable for any growing content creator.
Starting an LLC
There are many reasons to form an LLC but the most important one is that it can free content creators from an undesirable legal or financial liability should their business turn the wrong way. While in a sole proprietorship, the individual assets of a content creator are at constant risk, forming an LLC limits this liability in case of unforeseen events for the business.
A Limited Liability Company puts a strict line between personal and business liability, which is not only preferable from a legal standpoint but also better for the entrepreneur’s peace of mind.
Obtaining a bank account
Being a content creator means obtaining a corporate bank account for payments associated with the monetized content. Whether a blogger sells actual goods or offers educational, coaching, or any other services, a bank account is indispensable for operating legally.
Legal documents
Once you form an LLC to promote and sell services or goods online, having all the legal paperwork at hand is a must. The package can include different documents, from properly drafted and signed contracts with third parties to terms and conditions for selling or reselling goods. As an individual interpreter, gathering all the administrative paperwork can be tough without the assistance of a legal professional.
Your Success Is in Your Hands — Free Consultation for Content Creators
LegalBison can help you form an LLC as a content creator and start selling goods safely today. All you have to do is get in touch for a free primary call.
Guiding questions to properly setup an LLC as a content creator
The questions in this section will guide you through the process of selling goods and services online in a legally compliant manner. If the answers to some of them remain unclear, consider getting assistance from a legal professional.
Legal implications of an LLC
Defining a legal structure
As an online influencer, a content creator, or a seller of goods and services, you can turn your hobby into a business at any point and gain actual income. The most common reasons to start an LLC include:
- A strict division between personal and business liability;
- Enhanced legal protection in case of disputes with clients or fraud;
- Facilitated tax-paying process;
- Transparency and credibility before the government and your community of followers.
In LegalBison’s practice, most influencers and social media creators do not require an LLC when they are just starting out. However, forming an LLC is recommended once the process gets serious and starts bringing actual income to the owner.
Forming an LLC as a content creator
You can facilitate the LLC obtainment process with the help of a legal professional. The assistance of a lawyer is highly advised since he or she will properly analyze your business model from a legal standpoint and reveal possible risks that can be avoided by forming an LLC. LegalBison treats each case with precision and from multiple perspectives, defining the best legal course for every content creator regardless of the services they offer.
Banking solutions for content creators
Are content creators entrepreneurs? Yes, as long as they earn any amount of income from their activities. A stable flow of money is usually a prerequisite for opening a corporate bank account. Besides, a business bank account is an obligatory requirement for an LLC. At the same time, whether you work as a sole proprietor or own a Limited Liability Company, having a separate bank account for business activities is a surefire way to simplify the tax-paying process.
- Defining a legal structure
- Forming an LLC as a content creator
- Banking solutions for content creators
Defining a legal structure
As an online influencer, a content creator, or a seller of goods and services, you can turn your hobby into a business at any point and gain actual income. The most common reasons to start an LLC include:
- A strict division between personal and business liability;
- Enhanced legal protection in case of disputes with clients or fraud;
- Facilitated tax-paying process;
- Transparency and credibility before the government and your community of followers.
In LegalBison’s practice, most influencers and social media creators do not require an LLC when they are just starting out. However, forming an LLC is recommended once the process gets serious and starts bringing actual income to the owner.
Forming an LLC as a content creator
You can facilitate the LLC obtainment process with the help of a legal professional. The assistance of a lawyer is highly advised since he or she will properly analyze your business model from a legal standpoint and reveal possible risks that can be avoided by forming an LLC. LegalBison treats each case with precision and from multiple perspectives, defining the best legal course for every content creator regardless of the services they offer.
Banking solutions for content creators
Are content creators entrepreneurs? Yes, as long as they earn any amount of income from their activities. A stable flow of money is usually a prerequisite for opening a corporate bank account. Besides, a business bank account is an obligatory requirement for an LLC. At the same time, whether you work as a sole proprietor or own a Limited Liability Company, having a separate bank account for business activities is a surefire way to simplify the tax-paying process.
Best jurisdictions for a content creation LLC
Company Formation in Estonia
from 450 €-
Fast incorporation
-
0% tax on undistributed income
-
Entirely remote
Company Formation and Business Setup in UAE
from 3.000 €-
Competitive taxation
-
Trusted and growing
-
Easy to incorporate
Company Formation in Hong Kong
from 750 €-
Ideal offshore jurisdiction
-
Advantageous taxation
-
Fast and cheap process
Company Formation in Thailand
from 3.000 €-
South Asian powerhouse
-
Quick incorporation
-
Rising economy
Company Formation in British Virgin Islands
from 1.320 €-
Top offshore jurisdiction
-
Tax-free, no reporting
-
High secrecy
Company Formation in Seychelles
from 790 €-
0% Tax
-
No reporting
-
Cheap and easy
Company Formation in Poland
from 1.500 €-
0% Tax if undistributed
-
A fast growing EU state
-
Tech savvy workforce
Company Formation in Saint Vincent and Grenadines
from 1.625 €-
0% Tax
-
High level of Secrecy
-
Great for Forex business
Examples of LegalBison's assistance with LLC
LegalBison has tackled numerous cases of assisting content creators on the best route for their business. Here are the most common case studies for legal solutions we provide to online influencers.
Assessing the need for an LLC
Reasons for LLC for a content creator can be multiple. In some cases, it can be an obligatory requirement once the monthly income for a content creation business reaches a certain threshold. In other cases, forming an LLC is advisable for additional protection and elevated trustability. The professional legal assessment from LegalBison deals with situations similar to the following:
- An Instagram model enters into a paid partnership with a skincare company, promoting their products in her posts. Does she need an LLC, a bank account, and proper legal documentation?
- A freelance copywriter from India offers his services to international companies. How will he align his business with the country’s legal framework and pay taxes, if required? Will he need an LLC and a proper bank account to receive payments for his services?
- A TikTok-based coach posts short educational videos and promotes her self-made pre-paid webinar to her followers. Is she working legally? How will an LLC improve her reputation and visibility in the community?
There are dozens of similar examples with different constants and variables. The common denominator in all of them is that LegalBison’s expert assistance is highly required for each.
Assistance with obtaining an LLC
Once the need for an LLC arises, the lawyers undertake the process immediately and in full. While the client concentrates on their business strategies, the experts at LegalBison work on aligning the company with the state requirements for an LLC.
One of the major aspects of such assistance is defining a business code for content-creator activities. Forming an LLC with the incorrect business code can lead to a possible conflict with the local tax authorities. A Limited Liability Company works as an insurance for content creators, hence the need to conduct the LLC formation flawlessly.
Opening a business bank account
Opening a separate bank account is recommended both for sole proprietors and influencers who work as an LLC. LegalBison establishes a connection between the client and the bank of the client’s choice, simplifying and enhancing the obtainment of a bank account. In case the client is not sure about the most optimal banking solution, the lawyers analyze the project, business needs, and targeted markets to define an appropriate bank for opening an account.
Ad-hoc legal advice
European regulators are actively embarking on a mission of regulating which services and products influencers sell and whether they do it legally. For example, many influencers in the financial sphere mistakenly think that they don’t provide financial advice or that they are fully authorized to do so. However, it’s wrong.
For instance, France, which actively combats abusive practices in selling content online, obliges all influencers to specify that what they are doing has commercial grounds. To put it simply, you have to always let your clients know that you are getting paid for what you promote or sell.
This and many other regulations that are already implemented or still underway might create legal complications for influencers. LegalBison’s team keeps track of all the regulatory updates and promptly notifies content creators of any policy changes.
Full legal package for Content Creators
Build your own company as a content creator with the assistance of LegalBison. Start with a free consultation and entrust your LLC to professional lawyers.
FAQ about our legal assistance for the setup of an LLC for influencers
It depends. You can be a sole proprietor and still sell or promote goods and services in a legally compliant way. However, if you want to protect your personal assets from possible liability, it is advised to create a Limited Liability Company as a content creator.
Yes, the taxes are obligatory both for sole proprietors and Limited Liability Companies. The taxation rate depends on your country of residence and local legislation.
Of course, there are multiple ways to monetize what you do on TikTok, even if it starts out as a simple hobby. Contact our professional lawyers to get started today and take the most out of your content.
Should I create an LLC for YouTube? The answer depends on your particular project and the services you intend to provide, sell, or promote on your channel. We recommend getting in touch with our legal team to find the best route for the success of your business.
Yes, it is highly recommended regardless of the business model. Experts at LegalBison have provided numerous content creators and online sellers with business bank accounts and we will be glad to tackle your project next.
The need for an LLC as an OnlyFans model depends on how much money you make on a regular basis and whether your local authorities require residents to declare them. For more details concerning this particular business model, we encourage you to contact us for a free primary consultation.
Get in touch with our experts
Need guidance on the regulations and taxes applicable to your influencer activity? In search of the perfect jurisdiction to register your activity?
Wait no more! Our consultants are here to pave the way for you. Request a consultation for free and talk to our legal experts.
Consulting team dedicated into advising the best suitable jurisdiction for your project.
International economics expert with UK and US education in corporate finance, alumna of NYU Abu Dhabi.
