What are the benefits of turning my cam business into an LLC

[ShyCollegeSlut]

Also, anyone with experience doing it what is the process for getting it done?

 

[brandonstills]

The benefits are primarily legal, privacy, and tax savings. At least in the USA.

1) As an individual you will be taxed "self-employment tax", which basically amounts to 15% that you have to pay in taxes. If your LLC issues dividends to you then you do not have to self-employment tax on that.

2) LLCs are less likely to be audited than Sole Proprietorships.

3) If your LLC is named your model name then people can just write a check to your model name. That means you don't need to give them your real name.

The disadvantages are that LLCs require a little bit of overhead and you will need to file 2 tax returns. You also need to understand how they work and there are steps that you need to take to maintain them.

In terms of the process, there are turn key company that will help you "incorporate" but I would recommend Michael Fattorosi (he's a lawyer that is well established in the adult industry and has worked with a lot of models). He can advise you and set up an LLC for you if it makes sense for your case.

 

[ShyCollegeSlut]

The benefits are primarily legal, privacy, and tax savings. At least in the USA.

1) As an individual you will be taxed "self-employment tax", which basically amounts to 15% that you have to pay in taxes. If your LLC issues dividends to you then you do not have to self-employment tax on that.

2) LLCs are less likely to be audited than Sole Proprietorships.

3) If your LLC is named your model name then people can just write a check to your model name. That means you don't need to give them your real name.

The disadvantages are that LLCs require a little bit of overhead and you will need to file 2 tax returns. You also need to understand how they work and there are steps that you need to take to maintain them.

In terms of the process, there are turn key company that will help you "incorporate" but I would recommend Michael Fattorosi (he's a lawyer that is well established in the adult industry and has worked with a lot of models). He can advise you and set up an LLC for you if it makes sense for your case.

Thanks for the info! i'm unsure whether or not that option is the best for me right now, as i'm only making enough income currently to be taxed the minimum % (about %10) however I do like the part where people can write you checks via your model name. I will have to do some further research on the topic.

Also more info that may or may not be important. Personally speaking I am in a situation where I may need to file for bankruptcy, however I have no assets (no house, car, etc in my name) and I am unsure if they could touch my camming business or not considering there aren't any assets involved aside from my laptop and other cheap/small items.

In that situation would I be better off to incorporate my business to keep personal and business debts separated?

 

[brandonstills]

Me personally, I wouldn't bother until there was at least $40,000 of profit in any business. It doesn't warrant the overhead and costs. I don't know much about bankruptcy. Income isn't an asset though. It's not something they can seize. But something that has an income stream (MFC profile, onlyfans account) might be. You'd have to check with a bankruptcy specialist.

 

[KylieJacobs]

Thanks for the info! i'm unsure whether or not that option is the best for me right now, as i'm only making enough income currently to be taxed the minimum % (about %10) however I do like the part where people can write you checks via your model name. I will have to do some further research on the topic.

Also more info that may or may not be important. Personally speaking I am in a situation where I may need to file for bankruptcy, however I have no assets (no house, car, etc in my name) and I am unsure if they could touch my camming business or not considering there aren't any assets involved aside from my laptop and other cheap/small items.

In that situation would I be better off to incorporate my business to keep personal and business debts separated?

I doubt that they would touch any of your personal/business assets unless you have over $10,000 worth (at garage sale prices). Most states you are actually allowed to keep your car and your house as long as you don't have too much equity in them. My understanding is that they would only consider taking your business if it was something that a creditor could resell. Since your business is YOU, I don't see how they could resell something like that.

Most bankruptcy lawyers will give you a free consultation where you can ask a lot of questions and tell them your concerns.