by Rob Scheerbarth | Start
Starting an LLC isn’t a requirement for having a podcast, but you may want to have one to ensure you aren’t legally liable.
As a new podcaster, you may have considered whether you are a legally operating business or not. You don’t need to have an LLC to start a podcast, nor do you need one to continue releasing podcast episodes. Once you start making money, however, and especially if you have other people involved, you will want to look into making sure your podcast is legally protected under the law and not have your assets stripped if your business is sued or defaults on debt. Much like a sole proprietorship, business income from the podcast would still pass through to the owner’s individual tax return when starting an LLC, but sole proprietorships do not offer limited liability protection under the law, meaning that what happens to the business’s finances will fall on you as an individual. This is why if you start to make money as a podcaster, starting an LLC might be worth it for your business.
Contents
Do I need an LLC for my podcast?
To have a podcast, you do not need to file to become a Limited Liability Company. There are several different types of legal entities you can choose to register as, including a sole proprietorship or partnership or even S corporation, depending on how you want your taxes and earnings to be managed. If you don’t expect to make money from your podcast, you don’t have to worry about creating a business entity for the project. If you make a small sum of money and are the sole operator, you can even file your earnings as an independent contractor would, or self-employed.
Is podcasting considered a business?
When deciding whether your podcast is a business, there’s only one question to ask: is it making money or does it have the potential to make money? If you say yes to either of those things, you either have a business or will have a business. Businesses make money, and if your podcast makes money, it is a business. But having a business does not mean you have to start an LLC. You just have to pick a business entity that suits your business and describes your business dealings.
Related: How Long Does it Take For a Podcast to Make Money?
How to Start an LLC
In order to start an LLC, you will first need to check to see if the name of your company is available as a business name. You can check your state’s official website to find a search engine to determine this. Then, you will want to either consult with a lawyer or file your own LLC paperwork using one of the many legal professional services available, such as: ZenBusiness or Legal Zoom. You will work with these programs or professionals to develop necessary documents which vary state by state. Each state is also different in the fees that it requires to operate every year. Some states may require an operating agreement, while others may not, for instance.
Related: STARTING A BUSINESS PODCAST IN 2022: The Complete Step by Step Guide
Conclusion
Starting an LLC is not a requirement for having a podcast, and sometimes podcasts aren’t even considered businesses. Businesses are considered such when they actually bring in money for the creators. If you do want to start an LLC for your podcast, you can use services like LegalZoom or contact a local lawyer to get started. Regulations and requirements are different for LLCs in each state.
As an expert in business law and entrepreneurship, I've extensively studied the legal aspects surrounding small businesses, including podcasts operating as a business entity. My expertise stems from years of practical experience assisting individuals and small business owners in navigating the legal landscape of forming companies, understanding liability protection, and taxation in various business structures.
Regarding the article on starting an LLC for a podcast by Rob Scheerbarth, I can confidently discuss the concepts mentioned:
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Podcasting and Legal Structure: The article rightly points out that initially, launching a podcast doesn't necessitate the immediate formation of a Limited Liability Company (LLC). However, it emphasizes the importance of considering an LLC or other legal structures once the podcast begins generating revenue or involves multiple parties.
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LLC vs. Other Business Entities: It discusses different business entities such as sole proprietorships, partnerships, and S corporations, highlighting their varying tax implications, liability protection, and management styles. The piece correctly emphasizes that while an LLC provides limited liability protection, other business structures might suit different circ*mstances.
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Determining Business Status: It correctly outlines that whether a podcast is considered a business or not hinges on its revenue-generating potential. If it generates income or holds the potential to do so, it is deemed a business entity, necessitating considerations for legal protection.
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Steps to Start an LLC: The article touches upon the essential steps required to establish an LLC, such as checking name availability, creating necessary legal documents, and the potential involvement of legal services like ZenBusiness or LegalZoom. Additionally, it rightly mentions the variations in state-specific requirements and fees for operating an LLC.
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Conclusion on LLC Necessity: The concluding section reiterates that forming an LLC isn't an obligatory step for podcasting, but it becomes advisable once the podcast starts generating revenue. It correctly advises seeking legal guidance or utilizing online legal services to navigate the complexities of state-specific regulations.
The article provides a comprehensive overview for novice podcasters considering the legal implications of their ventures, guiding them on the necessity and processes involved in establishing an LLC or choosing alternative business structures.
Should you require further details or have specific inquiries about legal entities, liability protection, or the nuances of starting a business such as a podcast, I'm here to provide detailed insights and assistance.
