Emil Jersling
How do you as a social media influencer manage your finances? Here are 4 business entity options to handle your growing business. Tell us what you are using!
The simplest business entity to establish. Any income is subject to both income tax and self-employment tax and your business income is treated as personal income so any increases in business revenue risk putting you into a higher tax bracket. Any legal claims against your business are not limited to your business assets but extend to all your personal assets.
Similar to a sole proprietorship except that it is owned by more than one individual. Does not require paperwork, profits or losses pass through each owner’s individual tax returns and the owners lack limited liability protection. Only advisable in early-stage, low-risk ventures, where there’s a lot of trust between the partners.
Very popular company entity. Offers limited liability protecting your personal assets in the event that your business defaults on a debt, or you get into a lawsuit. Flexible taxation choose either be taxed as a corporation or as a sole proprietorship.
Can issue shares necessary to take on investors. Also has liability protection Most flexible with regards to taxation taxed as a separate legal entity at a flat rate of 21% of profits. Due to complexities in taxation, setup, and reporting this option is not attractive for most influencers before generating significant income from influencer activities.
Find a local CPA (“certified public accountant”) for advice on tax, company registration, and accounting and an epic marketing agency for support building great brand partnerships.
Nuclear engineer/rocket scientist turned serial-entrepreneur polyglot. Founder of Beanepic, livestream influencer marketing agency. Currently residing in Shenzhen, China.
