Should You Form an LLC or S-Corp as a Content Creator?

At some point, every successful creator asks the same question: "Should I form an LLC? What about an S-Corp? Will it save me money?"

The answer isn't always straightforward, but for many creators earning $75,000 or more, the right business structure can save thousands of dollars in taxes every year.

Let's break down exactly how these structures work, when each makes sense, and how to decide which is right for you.

The Self-Employment Tax Problem

As a sole proprietor or default LLC, you pay self-employment tax on all your net business income — 15.3% (12.4% Social Security + 2.9% Medicare). On $150,000 in profit, that's $22,950 just in self-employment tax before income tax.

The S-Corp election splits your income into a salary (subject to payroll taxes) and distributions (not subject to self-employment tax). On $150,000 with a $75,000 salary, you could save roughly $9,725/year.

The $75,000 Threshold

S-Corp benefits start outweighing the costs around $75,000 in net profit. Below that, the overhead of payroll processing and additional accounting ($1,000–4,000/year) often erases the savings.

An LLC, on the other hand, provides legal liability protection with minimal complexity — it's the right move for most creators getting started or earning under that threshold.

This article was originally published on OnlyFunds. Read the full article here →