How to Start an LLC for OnlyFans (Step-by-Step Guide)
There are over 238 million registered users on OnlyFans and more than 1.2 million content creators. Since its inception, OnlyFans has paid its creators over $5 billion.
If you’re a creator earning some money on the platform, protecting yourself as an entity might make sense.
And that’s where forming an LLC (Limited Liability Company) can be helpful.
Setting up an LLC for your OnlyFans business isn’t just about protecting your assets—it can also give you more tax flexibility and make your brand look more professional.
Let’s dive into why forming an LLC might be the perfect next step for your OnlyFans journey and how to get started.
Can you Form an LLC for OnlyFans?
Yes, you can form an LLC for your OnlyFans account, if you’d like to run it as a business.
You don’t necessarily need an LLC to start on OnlyFans, but it’s worth considering if you want to grow it as a business.
One big reason to set up an LLC is for liability protection. If your OnlyFans business faces legal issues, an LLC separates your assets, like your house or savings, from your business assets.
There are also potential tax benefits.
With an LLC, your business income passes through to your taxes, simplifying the process. As your income grows, you can explore structures like an S-corp to save on self-employment taxes.
Additionally, forming an LLC provides an extra layer of privacy. Your personal information isn’t publicly linked to your business, which is crucial for creators on platforms like OnlyFans and other cam services like MyFreeCams or MyStar.
An LLC isn’t a must-have for everyone, especially if you’re just starting or earning a small income. However, it can be a smart choice if you’re seeing growth and want more protection.
What are the benefits of an LLC for OnlyFans?
Starting an LLC for your OnlyFans business can offer several advantages that help protect and grow your brand.
Here are some key reasons why forming an LLC can be beneficial:
Personal Asset Protection
One of the main reasons for forming an LLC is personal asset protection. If your OnlyFans business faces legal issues, such as lawsuits or debts, your assets—like your home, car, and savings—are generally shielded from being seized.
Pass-through Taxation
Another advantage of an LLC is pass-through taxation. This means that the business income is reported on your tax return, avoiding the double taxation that can occur with corporations. You pay taxes on the profits at your personal income tax rate, which can be beneficial, especially for freelancers and independent contractors.
Enhanced Credibility and Professionalism
Having an LLC can enhance your credibility and professionalism in the eyes of subscribers and collaborators. This professionalism can increase your audience’s trust and may open doors for partnerships, sponsorships, or collaborations with other creators or brands in your niche.
Credibility with Subscribers
By forming an LLC, you signal your subscribers that you’re serious about your content creation. This can increase trust and loyalty, as subscribers may feel more comfortable supporting a legitimate business than an individual creator without a formal structure.
Enhanced Privacy
Operating as an LLC helps protect your privacy by keeping your personal information separate from your business activities. This is especially important for OnlyFans creators, where privacy can be a significant concern due to the nature of the content and potential risks like stalking.
How to Start an LLC for OnlyFans?
Starting an LLC for your OnlyFans business can provide essential legal protections and a more professional structure.
Here are the steps to get you started on this journey.
1. Select Your State for OnlyFans LLC Registration
Choosing the right state to register your OnlyFans LLC is crucial, as laws and regulations vary by state.
Some states, like Wyoming and Delaware, offer more privacy and favorable business laws, which can benefit online content creators.
When choosing, consider tax implications, filing fees, and annual requirements. Research each state’s business environment and decide which aligns best with your goals.
2. Pick a Unique Name for Your OnlyFans LLC
Your LLC name should be unique, memorable, and reflective of your brand as an OnlyFans creator.
It must also comply with state naming regulations, which typically require that the name includes “Limited Liability Company” or abbreviations like “LLC.”
Before settling on a name, check its availability through your chosen state’s business registry to avoid conflicts with existing businesses.
3. Appoint a Registered Agent
A registered agent is a designated individual or service responsible for receiving legal documents on behalf of your LLC. This ensures you stay compliant with state laws and receive important notices promptly. You can serve as your registered agent, but hiring a professional service is often advisable, especially if you wish to maintain privacy.
Best Registered Agent Service: Northwest
Our top recommendation is Northwest Registered Agent. Unlike other services charging $300/year, Northwest offers the first year FREE for new LLCs. Enjoy registered agent service for OnlyFans, email forwarding, privacy protection, free business address and expert support.
4. Submit Your Formation Documents (Certificate of Formation)
Filing the Certificate of Formation (or Articles of Organization) is the formal step to establish your OnlyFans LLC with the state.
This document typically includes your LLC’s name, registered agent information, and the address of the principal place of business. Each state has specific filing requirements and fees, so comply with them when preparing your application.
5. Acquire an Employer Identification Number (EIN)
An Employer Identification Number (EIN) is a unique identifier issued by the IRS for tax purposes, similar to a Social Security number for individuals. Even if you don’t plan to hire employees, obtaining an EIN can help you separate your personal and business finances. You can apply for an EIN online through the IRS website, and the process is typically quick and free.
6. Draft an Operating Agreement (Optional)
An operating agreement outlines the management structure and procedures for your OnlyFans LLC, detailing members’ roles and decision-making processes.
While not always required by law, having one can help clarify expectations and prevent future member disputes. This document can cover profit distribution, member responsibilities, and procedures for adding or removing members.
7. Secure Necessary Business Licenses and Permits (If Necessary)
When starting your OnlyFans business, secure the following necessary licenses and permits: a general business license, an adult entertainment license (if applicable), a sales tax permit (if selling merchandise), compliance with local zoning laws, and any required health and safety permits.
8. Open a Dedicated Business Bank Account
Opening a business bank account for your OnlyFans LLC is essential for maintaining financial organization and separating personal and business expenses.
This will help you streamline accounting and simplify tax preparation. Many banks offer specialized business accounts that provide features tailored to small businesses, such as invoicing tools and expense tracking.
Additional Resources and Other considerations for OnlyFans LLC owners
Utilize an LLC Formation Service for a Smooth Setup
Opting for an LLC formation service can significantly streamline the process of establishing your OnlyFans business. These services handle the paperwork, ensuring compliance with state regulations, and can help you avoid common pitfalls.
Companies like Northwest Registered Agent are highly recommended for customer service and expertise. Using a formation service saves you time and effort, allowing you to focus on your content creation and marketing strategies.
Best LLC Service: Northwest
We recommend Northwest for your OnlyFans LLC ($39 + State Fees) as the overall best formation service because of its affordability, privacy and record-breaking customer support. The sweet part? Their registered agent service is free for the first year, saving you up to $300 in formation fees.
Familiarize Yourself with Ongoing Compliance Requirements
Once your LLC is formed, it’s essential to understand the ongoing maintenance requirements, which may include filing annual reports and paying franchise taxes. Each state has different regulations regarding what is required for LLCs, and failing to comply can lead to penalties or even dissolution of your business.
Staying organized and keeping track of deadlines will help you maintain your LLC’s good standing and avoid unnecessary complications.
Complete a Beneficial Ownership Information Report (BOI)
Many states require LLCs to file a Beneficial Ownership Information Report (BOI) to disclose the individuals who ultimately own or control the company. This report aims to promote transparency and combat financial crimes. Ensure you understand your state’s specific requirements and deadlines for submitting this report.
Consider Obtaining Insurance for Your LLC
Consider obtaining the following types of insurance for your OnlyFans LLC: general liability insurance, professional liability insurance, cyber liability insurance, and content creator insurance. These can help protect your business from various risks and liabilities associated with content creation and online engagement.
Seek Expert Guidance When Necessary
Navigating the complexities of running an LLC can be challenging, especially in the dynamic online content landscape. Don’t hesitate to seek expert advice when needed, whether from legal professionals, accountants, or business consultants.
What is the best state for OnlyFans Creators to open an LLC?
When deciding the best state to open an LLC for your OnlyFans business, consider factors like privacy protections, tax benefits, and the ease of the formation process. Here are some states that stand out as great options for creators.
Due to its strong privacy protections, Wyoming is a top choice—disclosing members or managers in public filings is not required. Plus, no state income tax allows you to keep more of your earnings from OnlyFans.
Delaware is popular for its business-friendly laws and flexible management structures. While you must file an annual report and pay a franchise tax, it offers solid legal protections that can benefit your OnlyFans business.
Nevada also provides strong privacy protections with no state income tax and minimal reporting requirements. This makes it a favorable state for online content creators.
Florida is attractive because no state income tax means more money for you. It has a straightforward LLC formation process and solid asset protection laws, making it a good choice for OnlyFans creators.
Texas features a large market and no state income tax, with a simple LLC formation process and strong legal protections for business owners.
Frequently Asked Questions
Why should I consider forming an LLC for my OnlyFans account?
An LLC offers personal liability protection, meaning your assets are generally shielded from business debts or legal issues. This is especially important for OnlyFans creators, who may face legal challenges. An LLC also boosts your credibility, showing subscribers and partners you’re serious about your business.
Do I need to use my real name when forming an LLC for OnlyFans?
No, you can select a business name that is different from your personal name or your OnlyFans account name. This can help maintain your privacy and create a distinct separation between your online persona and personal life. Some states even allow anonymous LLCs, which provide an extra layer of confidentiality.
Will forming an LLC affect my ability to receive payments on OnlyFans?
No, creating an LLC won’t impact how you receive payments on OnlyFans. You can continue to accept payments as you usually would. However, it’s smart to open a business bank account for your LLC.
What kind of insurance should I consider for my OnlyFans LLC?
Content creators should look into liability insurance to guard against potential lawsuits related to their content. You may also consider general business or professional liability insurance, which covers claims related to your services.
Can I operate my OnlyFans business as a single-member LLC?
Yes, you can run your OnlyFans business as a single-member LLC. This allows you to retain full control while enjoying personal liability protection and pass-through taxation benefits. Single-member LLCs are treated as disregarded entities for tax purposes, which makes tax filings easier.
Do I need to register my LLC in the state where I live?
Registering your LLC in your home state is generally recommended, but you can opt for another state if it offers better regulations or tax benefits. If you mainly operate your OnlyFans business from your home state, you may still need to register as a foreign entity there, which could lead to additional fees and paperwork.
How do I handle taxes for my OnlyFans LLC?
As the owner of an LLC, you’ll report your business income on your personal tax return using Schedule C (Form 1040). You may also be required to pay self-employment taxes on your net earnings. Keeping detailed records of all income and expenses related to your OnlyFans business will help ensure accurate tax reporting and compliance.
Can I hire employees or contractors under my OnlyFans LLC?
You can hire employees or independent contractors for your content creation or business operations. If you employ others, you must obtain an Employer Identification Number (EIN) and comply with employment laws, including payroll taxes and workers’ compensation insurance.
Can I form an LLC for OnlyFans if I’m not a U.S. citizen?
Yes, you can form an LLC in the U.S. even if you’re not a citizen. Some states allow non-residents to establish an LLC. It’s essential to check the state’s specific requirements where you plan to register.
Do I need an operating agreement for my OnlyFans LLC?
While not legally required in all states, having an operating agreement is a good practice. This document outlines how your LLC will be managed and can help prevent member disputes. It’s especially beneficial for multi-member LLCs.
How do I pay myself from my OnlyFans LLC?
You can pay yourself through a salary or by taking distributions from the profits of the LLC. If you choose to pay yourself a salary, you must run payroll and withhold taxes. For distributions, you’ll simply withdraw money from the business account, but ensure you maintain accurate records for tax purposes.
What are the disadvantages of forming an LLC for my OnlyFans?
While an LLC offers benefits, it also comes with drawbacks. You’ll have to deal with formation fees, potential annual fees, and ongoing compliance requirements. Maintaining an LLC can also be more complex than operating as a sole proprietor.
What annual fees are associated with an OnlyFans LLC?
Annual fees for an LLC vary by state but can include franchise taxes, annual report fees, and other compliance costs. It’s important to check your state’s specific requirements to avoid surprises.
Can I hire employees for my OnlyFans LLC?
Absolutely! As the owner, you can hire employees or contractors. However, you must follow employment laws, obtain an EIN, and manage payroll taxes.
Can I serve as my LLC’s registered agent?
You can serve as your LLC’s registered agent, provided you meet your state’s requirements. This role involves receiving legal documents on behalf of your LLC, so ensure you’re available at the registered address.
Why should I hire an LLC service when I can form my own LLC?
Using an LLC service can save you time and reduce the chances of making errors in the formation process. These services often guide compliance and can handle paperwork, making the process smoother, especially for those unfamiliar with business regulations.
Are permits or licenses required for OnlyFans?
While not all OnlyFans creators need permits or licenses, certain activities or content types might require them. It’s best to research local regulations to ensure compliance with any necessary laws for your specific content.
Disclosure: We may earn commissions if you buy via links on our website. Commissions don’t affect our opinions or evaluations. We’re also an independent affiliate of many platforms, including ClickFunnels, Kartra, GoHighLevel, Podia, Northwest Registered Agent, and others. We’re not employees of these services. We receive referral payments from them, and the opinions expressed here are our own and are not official statements of these companies.
