We’re all fans of free speech 🗣️ but as many of us know, sometimes our words can get us into trouble.
Take YouTuber Tasha K, for instance.
In 2019, Tasha K claimed that Cardi B used drugs while pregnant🤰, was a prostitute, and had STDs. These aren’t exactly claims that anyone wants to hear about themselves, especially online!
Naturally, Cardi filed a defamation lawsuit against Tasha K, allegedly for millions of dollars 💵 – which she probably didn’t have lying around. If Cardi were to win this lawsuit, she would most likely take Tasha K’s house 🏠, cars 🚗, and jewelry 💎.
Creator, learn from Tasha K’s mistakes. Protect yourself with a YouTube LLC.
What is an LLC?
An LLC, or limited liability company 💼, is a kind of business entity that has two main benefits:
An LLC protects you from personal liability for corporate debts.
Say that, like Tasha K, you spread false information about an individual on your YouTube channel. If this false information is enough to damage that person’s reputation, they’re most likely going to file a defamation lawsuit against you for slander 🙊.
Without an LLC, you would be responsible for paying that judgment with your personal money and provisions. However, with an LLC, you would protected by using corporate assets for that payment instead.
In other words, if you were to be sued with a defamation lawsuit, your LLC would be sued, as opposed to you 💁.
An LLC does not require you to pay income taxes on your personal income and corporate income taxes. So, no double taxation💲.
Unlike a corporation, which is taxed on its income in addition to your salary, an LLC only has one type of taxation. Any amounts above your expenses are adding only to your personal income taxes, so you only have to pay one time. There is no additional corporate tax attached to an LLC. As a result, YouTubers who have an LLC can retain more of the money they make 💰.
Creating an LLC
Okay, so you’re sold! You’re ready to create your LLC. Luckily, obtaining an LLC isn’t dependent on what state you live in – or even what country – so it’s super easy to get.
Here are the two ways to go about securing one:
Online 🌐 – the cheaper option
✅ Visit your local Secretary of State’s website to find the filing fees, which are usually about $200 or so.
✅ Find and complete various agreements and documents needed to create your LLC online for free!
With a law firm 👨💼 – the better value
✅ Paying a law firm to create your LLC for you will cost around $1,500-$2,000.
✅ The value in hiring a law firm is in their specialized forms tailored to meet your exact needs. For example, my law firm has custom-designed forms for YouTubers to maximize your income and protection of liability.
Whichever way you go about creating a YouTube LLC, it’s important to protect yourself against serious legal trouble that could end up costing you millions.
Interested in more tips on protecting yourself as a YouTuber? Click here for 5 Powerful Legal Tips that will Protect your Channel!