Complete Guide to Taxes in Florida
Find out about tax rates, exemptions, and how to stay compliant with Florida’s tax requirements to maximize your benefits.
OnlyFans has become a popular platform for content creators looking to monetize their work. With over 3 million users, Colombia ranks as the eighth country worldwide with the most content creators and the first in South America, followed by Mexico, Chile, and Argentina.
This blog will show you how to monetize and earn money from OnlyFans, detail the necessary steps to declare your income in different Latin American countries, and explore the benefits of establishing a company in the United States to optimize your earnings.
OnlyFans is a subscription platform that allows content creators to earn money by publishing exclusive content for their followers. Users pay a monthly fee to access this content, and creators can generate additional income through tips and private messages.
To start making money on OnlyFans, follow these steps:
The decision to pay taxes in Latin American countries vs. the United States can significantly affect your net income due to differences in tax rates and structures. Here’s a general comparison:
As a content creator on OnlyFans, you become your own boss and business manager, exposing yourself to legal disputes, privacy violations, and tax audits. These can be managed better with a Limited Liability Company (LLC).
Here are some benefits of creating an LLC for content creators:
There are only a few steps to create an LLC and add a layer of legal protection for yourself. Here’s what you need to know:
If you already operate an OnlyFans account, you might have an established business name. Otherwise, research possible names and consider if you want your own website and check available domain names.
Then, check with the Secretary of State database in the state where you plan to establish the LLC to confirm that the chosen business name is not already in use. It may also be helpful to search the U.S. Patent and Trademark Office to confirm the name is not trademarked.
A registered agent is an individual or entity designated to receive and accept legal documents on behalf of the business. The registered agent must have a physical address in the state and be available during normal business hours to accept service of process if the company is sued.
In most states, a registered agent can be a person residing in the state, a national corporation, a national LLC, or a foreign corporation or foreign LLC authorized to do business in the state. You can also act as your own registered agent if you can be available at the business's physical location during normal business hours.
The Articles of Organization are a legal document that provides necessary information about the LLC, such as its name, address, purpose, and the names of its members or managers. This is the official filing document in many states to create the LLC.
The LLC becomes a legally recognized entity separate from its owners by filing the Articles of Organization with the Secretary of State or the appropriate government agency. This means you get the benefits of liability protection while easily separating personal assets from business income.
An LLC Operating Agreement is an important document outlining the rights, responsibilities, and operating procedures of the LLC members. Even if you create a single-member LLC, developing an operating agreement is important to establish business governance.
It serves as a contract among the members and governs the internal affairs of the business. Points covered in the operating agreement include the distribution of profits and losses, management structure, decision-making process, and dispute resolution.
All LLCs must obtain an Employer Identification Number (EIN) from the IRS. The EIN allows you to hire employees and open a business bank account. You can apply for an EIN online or by mail using IRS Form SS-4. Then, you’ll want to open a business checking account to separate personal finances from business finances.
An LLC formation service can include applying for an EIN so you can start opening an LLC bank account faster.
Monetizing on OnlyFans is an excellent opportunity for Latin American content creators. With the right strategy, you can maximize your earnings and minimize your taxes. Consider establishing a company in the United States to gain additional tax and legal benefits.
At Prodezk, we offer personalized service at every stage of the process, ensuring a hassle-free experience and successful registration of your business in the U.S.