Do I need an LLC before I hire a creator accountant?
Short answer
No, you don't need an LLC to start with DeCypher, and every plan includes one LLC formation if we recommend you form one.
Otavio Mayole, Co-founder, DeCypher FinancialsUpdated
What an LLC does: it separates your business from you, so if a brand or customer sues the business, your house, car and savings are better protected. That protection only holds if you keep business and personal money separate.
What it doesn't do: an LLC alone doesn't lower your taxes. A single-member LLC is taxed like a sole proprietor by default. It matters for taxes because it's the step that makes an S-Corp election possible later.
Mistakes we see on calls:
- An LLC formed years ago and never used, with all income still going to the creator's personal account
- An LLC formed in a different state from where the creator lives, without registering in the home state
- An LLC dissolved by the state after a missed annual report or franchise tax filing
- W-9s still sent to brands with a Social Security number instead of the LLC's EIN
All of these can usually be fixed. When we form your LLC, state filing fees and registered agent fees are yours; the formation work is included.