I've been running my YouTube channel as a sole prop for 3 years, but now I'm getting sponsorship offers and want to start selling merch. Is it smarter to put everything under one LLC or split into separate ones? I'm a one-person operation and don't want to overcomplicate things, but I also don't want to get sued into oblivion. Any advice?
Business Structure
One LLC for YouTube sponsorships, advertising, and merchandise?
One LLC is fine for that. Splitting is overkill unless you've got real liability concerns like physical products or employees. Merch might warrant its own if you're selling kods' stuff or something regulated.
Talk to a CPA, not a forum. But generally, a single LLC can hold multiple income streams. The main thing is keeping personal and business finances separate.
I've got one LLC for everything—ads, sponsors, digital products. Works fine. Just make sure your operating agreement lists all activities you might do. And get a separate bank account obviously.
Yeah, separate bank account is a given. But what about taxes? Do I need to file separate schedules for each activity under one LLC? That sounds like a headache.
No, it's all just pass-through income on your Schedule C if you're a single-member LLC. You can itemize categories but it's not separate filings. Relax.
Merch is the tricky part. If you're selling t-shirts, you might want a separate LLC because of product liability. But honestly, as a small creator, your risk is low unless you're selling something dangerous. Just don't sell knives with your logo.
This. I know a guy who got sued over a coffee mug that broke and cut someone. One LLC might cover you but if you have separate entities it's cleaner if things go sideways.
That's paranoid. Most YouTubers with merch just use print-on-demand and the POD co mpany takes on most liability. Don't overthink it.
I'd still get an umbrella policy. Cheap and covers gaps.
Umbrella policy? Like for my house? How does that apply to YouTube?
Business umbrella, not personal. Covers liability beyond your generl policy. Actually relevant if you have sponsorships where you're endorsing stuff.
Sponsorships are basically advertising contracts. Make sure your LLC is the one signing, not you personally. That's the whole point.
And check if your state requires a DBA for the merch name. If you're selling under a differen brand than your channel name, you might need to register it.
This thread went from 'one LLC?' to 'hire a lawyer' real fast. Typical.
OP, just do one LLC For now. Upgrade later if you blow up. Don't let perfect be the enemy of done.
Appreciate it. I'll stiart with one and keep records clean. If merch takes off I'll revisit.