Do You Need an LLC for OnlyFans?
Your OnlyFans account is a business — and like any business, you can structure it in multiple ways. Your chosen structure can influence your taxes, anonymity, and personal liability.
Some models use the option of creating a limited liability company (LLC). Keep reading to learn whether you should have an LLC for OnlyFans.
What Business Type Is OnlyFans?
The IRS treats OnlyFans models as sole proprietors by default. This has a few crucial ramifications you should understand.
First, if someone ever sued your business, your personal assets would be at risk. Your assets and the business’s assets are considered one and the same.
Also, your OnlyFans business name and your name are one and the same when you run a sole proprietorship. That’s an issue if you want to retain your anonymity online, though there are some workarounds, such as filing for a “doing-business-as” (DBA) name.
Finally, any money you make on OnlyFans is taxable income. As a sole business owner, your federal income taxes will be higher since you’ll have to pay self-employment taxes.
Thankfully, much of these headaches can be avoided by organizing your modeling career as an OnlyFans LLC. Doing so may help you save money on your next tax return since even a single-member LLC offers meaningful tax benefits.
4 Benefits of Creating an LLC for Your OnlyFans
Selling your adult content through an LLC can help you in multiple ways. Here are four benefits you can enjoy after starting an LLC.
1. Safeguard Your Privacy Through an Anonymous LLC
Protecting your anonymity is essential when running an OnlyFans business. LLCs make this easier. You can create one in a state that allows you to remain anonymous on your business formation documents.
That way, anyone trying to find you via official documents will hit a dead end. As of today, there are only four states that allow you to do this:
- Delaware
- Nevada
- New Mexico
- Wyoming
The good news is you typically don’t need to live in a state to open an LLC there. Partnering with a company that can provide you with a virtual business address can make this process a breeze.
2. Protect Against Most Business Liabilities
As the name implies, limited liability companies protect your personal liability in lawsuits. If someone were to sue your business, your personal assets, including your car, home, and bank account, would be safe.
This also means that even if your business struggles, your personal wealth will remain intact. The same protections aren’t in place for sole proprietorships.
3. Enjoy Tax Advantages on Your OnlyFans Business Income
Opening an LLC may also help you keep more of the money you make on OnlyFans. LLC owners have several tax options that are otherwise unavailable. You can decide between being taxed as a:
- Sole proprietorship
- Partnership
- C-corporation
- S-corporation
The option that’s best for you will depend on your personal financial situation. Still, just having this option lets you choose the most favorable kind of taxation every year and can help you avoid double taxation.
You may also be able to deduct more business expenses as an LLC owner. LLCs have more flexibility with write-offs, from start-up costs to ongoing operational expenses. That could reduce your tax bill with costs like your cellphone plan, internet, and business meals.
4. Decide How To Structure Your OnlyFans Company
If you decide an LLC is right for you, the next step is choosing the type you want. There are many options, including:
- Domestic LLCs, which operate in just one state
- Foreign LLCs, which operate in multiple states
- Single-member LLCs, which have just one owner
- Manager-managed LLCs, which hire a manager to be in charge of the business
There’s a lot of flexibility in how you set up an LLC. That’s one reason it can be helpful to talk to an OnlyFans lawyer or OnlyFans consultant while setting up your entity. They can help you find the best fit for your finances and non-financial goals.
How Can You Create an LLC for Your OnlyFans?
Creating an LLC involves filling out forms, paying a fee, and submitting them to the proper government office in your chosen state. It’s possible to create an LLC yourself, but the paperwork can be daunting, and there’s always the risk of making a critical error.
Alternatively, you can hire an LLC formation service to do the job for you. An LLC formation company will guide you through the process from start to finish. They can also advise you on the type of LLC you should create based on your goals.
These companies also provide various services you might need after forming an LLC. They can give you a business address, act as your official point of contact, and help you stay up-to-date with evolving LLC laws in your state.
Simplify Your OnlyFans Content Creator Business With Bluresca
Running your business activities through an LLC can help you save on OnlyFans taxes, retain your anonymity, and protect your personal assets.
However, choosing the right business structures is just one part of growing your OnlyFans page. You’ll still need to market yourself effectively, create great content, and stay on top of evolving industry trends.
Bluresca can help you do all of that. We’re an OnlyFans modeling agency that helps with collaborations, marketing guides, content creation, and more. It could be just the kind of support you need to start earning more on OnlyFans.
Get in touch today to learn more about how we can help.
