How to Declare Less Taxes as an Influencer or Content Creator

Influencers and content creators in Latin America face unique challenges when it comes to managing their finances and taxes. It is estimated that there are over 10.000 influencers in Colombia, over 30.000 in Mexico, around 15.000 in Argentina, about 5.000 in Chile, and approximately 3.000 in Ecuador. As their incomes increase, so do their tax obligations. Top influencers can earn from $50.000 to $500.000 annually, but in their respective countries, they face high tax rates that can range from 30% to 35%.

In this blog, I will show you how influencers can declare less taxes by creating a company in the United States. Additionally, we will share success stories and examples of influencers who have paid high taxes in the region.

Benefits of Creating a Company in the United States

1. Tax Reduction

Creating a company in the United States can offer significant tax advantages. Influencers can take advantage of U.S. tax laws to reduce their tax burden. For example, by operating under an LLC (Limited Liability Company), income can be reported as company earnings, often resulting in lower tax rates compared to personal income.

2. Savings on Commissions

Payment and money transfer platforms often charge high commissions when transferring money to accounts in Latin America. Having a bank account in the United States allows influencers to minimize these commissions and retain a larger portion of their earnings.

3. Access to Advanced Financial Services

Companies in the United States have access to a wide range of financial services that are not available in many Latin American countries. This includes access to better credit options, payment services, and financial management tools.

Influencers Who Have Paid High Taxes in Latin America

1. Caeli

Caeli, one of the most well-known YouTubers in Mexico, has faced high taxes due to the tax structure in her country. In Mexico, influencers can face a tax burden of up to 35% on their income. Despite her large earnings, a significant portion of her income goes towards paying taxes, affecting her net profitability.

2. Sofía Niño de Rivera

The comedian and YouTuber Sofía Niño de Rivera has also spoken about the high tax rates she pays in Mexico. Like Caeli, she has to pay up to 35% in taxes, affecting her ability to reinvest in her content and projects.

3. Yeferson Cossio

Yeferson Cossio, one of the most prominent influencers in Colombia, has mentioned the high taxes he has to pay in his country on several occasions. In Colombia, the tax burden can reach 33% of income. His success as a content creator has allowed him to generate significant income, but high tax rates affect his net earnings.

4. LaLiendra

LaLiendra, another popular Colombian influencer, has also experienced the consequences of high tax rates in Colombia. Although his income is considerable, a significant portion of it, up to 33%, goes towards paying taxes.

5. Epa Colombia

Epa Colombia, known for her controversial content and success on social media, has faced high taxes in Colombia. Despite her considerable earnings, the 33% tax obligations have affected her ability to maximize her income.

Success Stories of Influencers with Companies in the USA

1. Mariand Castrejon (Yuya)

Yuya, one of the most popular YouTubers in Mexico, decided to create her company in the United States. Thanks to this strategy, she has been able to optimize her tax structure and increase her net income. Yuya has mentioned in interviews that creating her company in the U.S. has allowed her to access better business opportunities and significantly reduce her operating costs.

2. Germán Garmendia

Germán Garmendia, the famous Chilean YouTuber, has also established his company in the United States. This decision has allowed him to manage his income more efficiently and benefit from the tax advantages offered by the U.S. system. Germán has been able to maximize his earnings and continue expanding his brand internationally.

3. Luisito Comunica

Luisito Comunica, one of the largest influencers in Mexico, has followed a similar path. By having his company in the United States, he has been able to reduce the taxes he pays in Mexico and take advantage of the financial benefits offered by the U.S. market.

How to Create an LLC in the U.S. as an Influencer

Creating an LLC in the U.S. is a relatively simple process that involves the following steps:

1. Choose the State: States like Delaware, Florida or Wyoming offer tax advantages and a favorable business environment.
2. Register Your LLC: Submit the LLC formation documents and pay the corresponding registration fees. These documents may include an operating agreement that outlines how the company will be managed.
3. Obtain Your EIN: An EIN (Employer Identification Number) is necessary to open business bank accounts and file taxes. You can easily obtain it through the IRS website.
4. Maintain Your Business Obligations: Ensure you comply with all local requirements, such as obtaining business licenses or specific permits depending on the type of content you produce.

Creating a company in the United States is an effective strategy for influencers and content creators in Latin America to declare less taxes and maximize their earnings.

At Prodezk, we offer personalized service at every step of the way, ensuring a hassle-free experience and a successful registration for your business in the U.S.