Why Social Media Influencers Should Form LLCs

As defined by the Screen Actors Guild (SAG-AFTRA), social media influencers are "popular content creators who have amassed a social media following that they capitalize on by making deals with advertisers to promote brands through the Influencer's creative content, which they distribute through their social media feeds." Like businesses, influencers (even though they may be individuals) are liable for contract violations, and any other legal issues otherwise connected with their influencer content. However, influencers can limit their personal liability and be eligible for labor union admission if they form a legal business entity. To limit their personal liability, while not increasing their tax obligations, social media influencers should form LLCs ("Limited Liability Companies").