It’s Time to Think of Yourself as a Business! Here’s Why You Should Consider an LLC
If you’re a creative—whether you’re a musician, visual artist, or run a small creative business—you may not think of yourself as a “business owner.” But in reality, once you start selling your work, offering services, or participating in events, you’ve crossed that line. And while your creative work is what you’re passionate about, it’s also important to think about how to protect yourself and grow your business.
That’s where setting up an LLC (Limited Liability Company) comes in.
For many creatives, forming an LLC can feel like a big step that doesn’t seem necessary, but it can be one of the smartest business decisions you’ll make. Here’s why:
Protect Your Personal Assets
As a creative, you probably operate as a sole proprietor by default, meaning there’s no separation between your personal assets and your business. This puts you at risk. If a client, customer, or even an event organizer sues you, your personal assets like your car, home, and savings could be at stake.
With an LLC, your personal and business finances are separated. This means that if something goes wrong, only your business assets are at risk. Protecting yourself legally is essential for long-term stability, especially if you’re working with multiple clients, selling online, or performing in public spaces.
Professional Credibility
Having an LLC after your name offers legal protection and adds a level of professionalism. It shows that you take your art and your business seriously. Whether you’re a freelance, a musician, running an art studio, or selling custom work, an LLC signals to others that you’re established, organized, and committed.
This can help you attract bigger opportunities, like bigger clients, galleries, or partnerships, because they see you as a legitimate entity rather than an amateur.
Tax Flexibility and Benefits
One of the biggest benefits of forming an LLC is the tax flexibility. LLCs allow you to choose how you want to be taxed. You can stick with being taxed as a sole proprietor, but you also have the option to be taxed as an S-corporation or even a partnership if you have multiple people involved.
LLCs allow you to deduct business expenses more easily. Costs like equipment, materials, studio space, travel expenses, and even certain utilities can be written off. For creatives who invest heavily in materials or performances, these deductions can make a big difference when tax season rolls around.
Keep Your Personal and Business Finances Separate
It’s easy to mix up personal and business finances when you’re running your own creative business. Keeping those finances separate is key to staying organized and avoiding headaches when tax time arrives.
Forming an LLC requires you to have a separate business bank account and credit card. This not only simplifies your accounting but also strengthens the legal protection an LLC offers. Plus, having a dedicated business account makes it easier to track your income and expenses, helping you manage cash flow more effectively.
It’s Easy to Set Up and Maintain
Forming an LLC is often easier and more affordable than most people think. You don’t need a team of lawyers or thousands of dollars to get started. In Nebraska, you can set up your LLC online in just a few steps. You’ll need to file articles of organization with the Nebraska Secretary of State and pay a small fee, typically around $100.
Once it’s set up, maintaining your LLC is straightforward. You’ll typically file an annual report and pay a small renewal fee, but these costs are minimal compared to the protection and benefits you gain. Overall, the process is designed to be simple and accessible for entrepreneurs in Nebraska.
Set Yourself Up for Future Growth
As your creative business grows, so do your opportunities and challenges. Maybe you’ll expand your services, collaborate with other artists, or even hire employees. An LLC makes it easier to scale because it allows you to bring in partners, manage taxes more effectively, and create a more structured business without losing the flexibility you need as a creative.
Whether you’re just starting out or looking to elevate your creative work, forming an LLC positions you for growth. It sets a strong foundation, giving you the confidence to pursue bigger goals and take your business further without unnecessary risk.
Protect Your Art By Protecting Yourself
For musicians, artists, and creatives of all kinds, forming an LLC might not feel like the most exciting part of your journey but it’s a smart move. It offers personal protection, increases your credibility, and gives you the financial tools you need to succeed in the long run.
Your art is your passion, and treating it like the business it is will give you more freedom to focus on what you love, while also ensuring that you’re building something sustainable. So if you’re thinking of starting a business, consider an LLC as the foundation that will help your creativity journey.
