If you’re blogger, you might be asking yourself whether you need to set up an LLC for your blog. The answer is…it depends. If you’re making money from your blog, then you may want to consider incorporation. Here’s how to figure out whether you need to form a blog LLC.
Is Your Blog Lucrative?
Wondering how to start a blog business? If you produce consistent, high-value content that serves your readership and generates good web traffic, ranks high in SEO, and converts to sales, you may be able to earn decent money from it.
If your blog generates money and you intend to continue growing it, then you should consider it a business and treat it as such. This means keeping track of your finances and taxes just like you would with any other small company, and perhaps creating a blog business plan so you can set and meet goals.
Want a blog that makes money, but not sure how to start it? Here are a few different ways to turn a blog into a business:
- Placing ads on your site: A common method of advertising on your blog is using pay-per-click ads. These are the banner ads displayed at the top or side of a website; if you choose to use them, you’ll be paid based on how many clicks they get.
- Affiliate marketing: If you’re familiar with Amazon Partners, then you know what affiliate marketing is. It works by forming a partnership with a company, and promoting their services or goods on your website. Sales you generate are tracked using a unique affiliate link, and you receive payment each time you net a sign up or sale for that company.
- Sponsored content: This is when you and a company or brand agree to create a sponsored blog post. After agreeing to the type of content and parameters, you may get paid a one-time fee, payment for a certain number of views or clicks or a combination of both. Sponsored content may also include a social media campaign, or simply sharing the posts on your social media platforms.
- Selling goods and services: Let’s say you have a blog about healthy eating, and you’ve created a cookbook and are kick-starting a meal prep service. Selling related goods and services on your blog is another way to make money, using the content you write as related promotional material.
Do Bloggers Need a Business License?
As you might expect, it really depends. While you most likely don’t need a federal business license for your blog, the majority of states require you have a general business license. Some cities also require you have a general business license depending on the location where you operate. If you’re not sure, Incfile’s Business License Research package can help make sure you have all the paperwork you need in place.
If you’re selling goods or services through your blog, you may need a sales tax license or sales permit. There may be fees and taxes to obtain a sales permit; each city and state has different requirements, so you’ll want to check to make sure.
The bottom line on turning a blog into a business is this: If you’re generating money — either by working with companies or selling your own creations and services on your blog — then you may need to form an LLC.
If you decide incorporation is right for your blog business, Incfile makes the process simple. Our website offers a ton of resources to help you learn more, and we can handle all the paperwork and processes involved in your incorporation. Check out our different packages, which all come with our expert service that’s ready to help you make your blogging business a reality, and continue managing your company toward success.