Starting your creator business means taking the next step in your journey and moving to a whole new status tier. Businesses offer necessary legal protection from personal liability and a way to legally operate according to government mandates.
If you generate revenue over a few hundred dollars you may need to legally claim it on your annual taxes. Accepting revenue without a business places you at significant risk of personal liability for your products or brand.
It is smart to start your business before accepting revenue to operate according to legal mandates, keep your business and personal finances separate, launch a shield of protection against personal liability from your business operations, and for tax reporting purposes.
Starting your business is easy and takes minutes! Register your business and get an EIN (employee tax number). Then you are ready to make sales and generate revenue!
Register Your Business
Business creation information is found on your state’s Secretary of State website. There are multiple business entity types and choosing the right one impacts your businesses operating model, financial reporting, and tax implications.
A Limited Liability Company, or LLC, is often recommended as the best business entity to start due to it being allowed to have a single member, limits you from personal liability against your business activities, and taxes are filed with your annual personal filing to make things easy.
Go to your state’s Secretary of State website to learn about the business creation process and requirements for each type of business entity. Perform a business name search to confirm your business name is not already used.
Follow the business creation process including selecting your business entity type, listing your business location and members, listing your registered agent, and paying your filing fees.
Business Location and Members
You must include an address for your business and members that will operate the company. An address can be a personal address if there is no need to have a brick and mortar location. An LLC provides the option to only include yourself as the member of a single member LLC.
Find a Registered Agent
A registered agent is someone who agrees to accept legal documentation on behalf of your business to serve to you. You can be your own registered agent in many locations or find a professional service to do this for you.
Business Filing Fees
New businesses pay filing fees to register with the state. Filing fees differ by state and business entity. Additional business filings such as annual filings also have fees to pay.
Get an EIN
An EIN is an Employer Identity Number. Your EIN serves as a unique identifier of your business to the IRS, or Internal Revenue Service, for tax purposes. You report your revenue generated from your business activities on your tax filings using your EIN. Similar to your social security number, your EIN ensures the IRS knows that it is your business reporting the income to them.
When choosing a payment provider to accept credit card payments on your website you are required to list your personal or business information. Using your business name, address, and EIN instead of your personal name, address, and social security number ensures clean reporting, filings, and taxes.