Pornstars: Should You Incorporate (File A Business) by Mika

Empress Mika

Should Cam Models / Pornstars Incorporate?

As a cam model, clip producer, and/or PSO, there comes a point in your career where it may be best to proceed as an incorporated business.

Each of us usually start off as a sole proprietorship. This is a perfect way to start in this incredible industry of online adult work, as it gets our feet wet, and we can really discover if this business is right for us over the course of time. It may be different for each of us, it can be weeks, months or years before we decide that this is the right industry for us.

 

When Is The Right Time To Incorporate?

When we do find that this business is right for us, especially as we become more and more successful, it might make more sense to incorporate. That is, to create a business and get taxed as a business. In most cases, it is usually best to incorporate after you find a certain level of success.

Below, I have the following questions to ask yourself to help you think through this important decision.

 

Am I going to stick with this business in the long-term?

If you plan on sticking with being an online adult worker for the long-run, chances are it may be best to incorporate after you find a certain level of success. If, however, you are unsure if this business is right for you, I would think twice about incorporating.

 

Does it cost money to incorporate?

The short answer to this is yes. There are fees to create and register your business with the state you reside in and possibly yearly fees with the state to keep it registered with the state, as well as yearly and even quarterly costs with your tax professional/accountant to maintain it to ensure everything is filed correctly.

 

At what point should I incorporate?

Incorporating, after you’re sure you want to stick with your online adult career, is usually best done if you’d like to:

Limit your liability: This means that, in the event that you are sued or in debt due to your business, it is your business that is being sued and the assets of the business that are pursued by creditors and plaintiffs and not you personally. Therefore your personal assets such as your home, savings accounts, etc, are protected.

S-Corp: If your income exceeds a certain level incorporating as an S-Corp or as an LLC with an S corp tax designation can decrease your overall tax burden depending on the state in which you reside in.

Increased Overhead: You are beginning to really increase your production costs towards your business as an online adult worker. This could include things such as purchasing pricey equipment, hiring a personal assistant, etc. These costs are business related expenses and incorporating as a business to use business assets to pay for these business expenses might make sense for you rather than using your personal savings.

 

How do I fully compare tax benefits with incorporating vs not incorporating?

This is best done with a tax professional, after you are familiar with your income and expenses as a sole proprietor. Remember, there are fees associated with running and maintaining your corporation and that needs to be analyzed alongside your income and expenses. I highly recommend working with Cam with Taxxx Guy.

 

Which corporation is best to have as an online adult worker?

Usually, it is best to have an S-Corp or an LLC taxed as an S-Corp to have both limited liability and a reduced tax burden. However, I recommend speaking with Cam or another tax professional about your own situation to ensure what is right for you and your situation.

 

I hope this has helped you decide whether or not you’d like to incorporate yourself as a business with your online adult work. Best of luck! 🙂

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Empress Mika
Empress Mika 18 posts

Empress Mika is a successful online female dominatrix that indulges in FemDom fetishes both in clips as well as live on cam. She owns the ultimate FemDom resource website for both Dommes and subs: DommeSource.com. Empress Mika as well as DommeSource are proud to partner and collaborate with Webcam Startup.

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