{"id":13254,"date":"2019-09-18T10:23:34","date_gmt":"2019-09-18T15:23:34","guid":{"rendered":"https:\/\/www.mediavine.com\/?p=13254"},"modified":"2020-09-04T11:44:05","modified_gmt":"2020-09-04T16:44:05","slug":"what-is-an-llc-and-how-does-it-work","status":"publish","type":"post","link":"https:\/\/www.mediavine.com\/blog\/what-is-an-llc-and-how-does-it-work\/","title":{"rendered":"What is an LLC and How Does it Work?"},"content":{"rendered":"\r\n<div class=\"wp-block-group alignfull has-global-padding is-layout-constrained wp-block-group-is-layout-constrained\" style=\"margin-top:0;margin-bottom:0;padding-top:0;padding-bottom:0\">\r\n<article class=\"wp-block-group alignfull has-global-padding is-layout-constrained wp-block-group-is-layout-constrained\" style=\"padding-top:0;padding-bottom:0\">\r\n<section class=\"wp-block-group alignfull is-style-beige has-global-padding is-layout-constrained wp-container-core-group-is-layout-772205c6 wp-block-group-is-layout-constrained is-style-beige--1\" style=\"padding-top:var(--wp--preset--spacing--50)\">\r\n<header class=\"wp-block-group c-breadcrumbs aligngrid has-global-padding is-content-justification-left is-layout-constrained wp-container-core-group-is-layout-61973aa6 wp-block-group-is-layout-constrained\" style=\"margin-top:0;margin-bottom:0\">\r\n<header class=\"wp-block-group aligngrid is-content-justification-left is-nowrap is-layout-flex wp-container-core-group-is-layout-d68226ec wp-block-group-is-layout-flex\" style=\"margin-top:0;margin-bottom:var(--wp--preset--spacing--30)\">\r\n<figure class=\"wp-block-image size-large is-resized\" style=\"margin-bottom:5px\"><img decoding=\"async\" src=\"https:\/\/mediavine-dev.d1.moderntribe.qa\/wp-content\/uploads\/2025\/10\/chevron-left2.svg\" alt=\"\" class=\"wp-image-542\" style=\"aspect-ratio:9\/16;object-fit:contain;width:auto;height:20px\"\/><\/figure>\r\n\r\n\r\n\r\n<p class=\"is-style-small is-style-small--2\"><a href=\"\/blog\/\">Back to Blog<\/a><\/p>\r\n<\/header>\r\n\r\n\r\n\r\n<hr class=\"wp-block-separator has-alpha-channel-opacity aligngrid\" style=\"margin-top:0;margin-bottom:0\"\/>\r\n<\/header>\r\n<\/section>\r\n\r\n\r\n\r\n<section class=\"wp-block-group alignfull is-style-default has-neutral-20-background-color has-background has-global-padding is-layout-constrained wp-block-group-is-layout-constrained\" style=\"margin-bottom:var(--wp--preset--spacing--70);padding-top:var(--wp--preset--spacing--40);padding-bottom:var(--wp--preset--spacing--60)\"><div class=\"aligncenter aligncenter wp-block-tribe-terms\"><ul class=\"wp-block-tribe-terms__list\"><li class=\"wp-block-tribe-terms__term\"><span class=\"wp-block-tribe-terms__link t-category\">General Blogging<\/span><\/li><\/ul><\/div>\r\n\r\n<h1 style=\"margin-top:var(--wp--preset--spacing--10);\" class=\"has-text-align-center wp-block-post-title\">What is an LLC and How Does it Work?<\/h1>\r\n\r\n\r\n<div class=\"wp-block-group is-content-justification-center is-nowrap is-layout-flex wp-container-core-group-is-layout-9b38c6d9 wp-block-group-is-layout-flex\" style=\"margin-top:var(--wp--preset--spacing--30);margin-bottom:0;padding-top:0;padding-bottom:0\"><div style=\"margin-bottom:0;margin-top:0;margin-left:0;margin-right:0;\" class=\"has-text-align-center wp-block-post-author-name\">The Mediavine Team<\/div>\r\n\r\n\r\n<p>\u2022<\/p>\r\n\r\n\r\n<div style=\"padding-top:0;padding-bottom:0;padding-left:0;padding-right:0;margin-top:0;margin-bottom:0;margin-left:0;margin-right:0;\" class=\"has-text-align-center wp-block-post-date has-10-font-size\"><time datetime=\"2019-09-18T10:23:34-05:00\">September 18, 2019<\/time><\/div><\/div>\r\n<\/section>\r\n\r\n\r\n\r\n<section class=\"wp-block-group alignfull has-global-padding is-layout-constrained wp-block-group-is-layout-constrained\" style=\"padding-top:0;padding-bottom:0\">At Mediavine, we&#8217;re all about content creators building sustainable businesses. As that business scales, influencers must legally protect themselves, their audience and their intellectual property. You know when we start throwing around terms like &#8216;intellectual property&#8217;, it&#8217;s time to call a lawyer.\n\n<img loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-13265 size-medium\" src=\"https:\/\/www.mediavine.com\/wp-content\/uploads\/2019\/09\/70172465_358807881486489_1859411584342818816_n-200x300.jpg\" alt=\"Jamie Lieberman\" width=\"200\" height=\"300\" srcset=\"https:\/\/www.mediavine.com\/wp-content\/uploads\/2019\/09\/70172465_358807881486489_1859411584342818816_n-200x300.jpg 200w, https:\/\/www.mediavine.com\/wp-content\/uploads\/2019\/09\/70172465_358807881486489_1859411584342818816_n-768x1152.jpg 768w, https:\/\/www.mediavine.com\/wp-content\/uploads\/2019\/09\/70172465_358807881486489_1859411584342818816_n-307x460.jpg 307w, https:\/\/www.mediavine.com\/wp-content\/uploads\/2019\/09\/70172465_358807881486489_1859411584342818816_n-735x1103.jpg 735w, https:\/\/www.mediavine.com\/wp-content\/uploads\/2019\/09\/70172465_358807881486489_1859411584342818816_n.jpg 1825w\" sizes=\"auto, (max-width: 200px) 100vw, 200px\" \/>\n\nWe&#8217;ve asked <a href=\"https:\/\/www.mediavine.com\/interview-jamie-lieberman\/\">attorney and friend of Mediavine Jamie Lieberman<\/a> to stop by the blog to give our readers the ins and outs of establishing an LLC.\n\nJamie Lieberman is an attorney, podcaster and entrepreneur dedicated to making legal accessible and sharing the message that legal does not have to be scary. As the owner of <a href=\"https:\/\/www.hashtag-legal.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Hashtag Legal<\/a>, Jamie draws on her experience working with influencer marketing professionals, creatives and business owners to help her clients grow and protect their businesses.\n\nShe leads an all female, virtual team focused on providing clients with advice on subjects such as intellectual property, contracts, privacy, FTC, business law, negotiation strategies, and <a href=\"https:\/\/www.mediavine.com\/gdpr-what-you-need-to-know\/\">for the Mediavine audience in 2018, GDPR<\/a>. Jamie is a highly experienced speaker (like <a href=\"https:\/\/www.youtube.com\/watch?v=MVn6KLj65D0&amp;list=PLVy2vgUysJwvIxc8X0riugJ5ueQtvzvSn&amp;index=7&amp;t=15s\" target=\"_blank\" rel=\"noopener noreferrer\">at the Mediavine Conference<\/a>) and is the co-host of the <a href=\"https:\/\/fearlessbusinesspodcast.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">FearLess Business Podcast<\/a>.\n\nWelcome Jamie, thanks for your expertise!<!--more-->\n\n<img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-13274 size-mv_create_no_ratio\" src=\"https:\/\/www.mediavine.com\/wp-content\/uploads\/2019\/09\/Mediavine-Pins-with-Photos-4-735x1102.jpg\" alt=\"Mediavine Pinterest image - Do you need an LLC? What is an LLC and how does it work? Check out our blog post to get started.\" width=\"735\" height=\"1102\" srcset=\"https:\/\/www.mediavine.com\/wp-content\/uploads\/2019\/09\/Mediavine-Pins-with-Photos-4.jpg 735w, https:\/\/www.mediavine.com\/wp-content\/uploads\/2019\/09\/Mediavine-Pins-with-Photos-4-200x300.jpg 200w, https:\/\/www.mediavine.com\/wp-content\/uploads\/2019\/09\/Mediavine-Pins-with-Photos-4-307x460.jpg 307w\" sizes=\"auto, (max-width: 735px) 100vw, 735px\" \/>\n<h3>When is it time to start thinking about forming an entity?<\/h3>\nDo any of these scenarios sound familiar? You had a great idea for a website, you bought the domain and you started to build the site.\n\nNow you&#8217;re running the website and it generates income. A lot of income actually (high five)!\n\nOR, you and your friend\/sister\/next door neighbor have an idea and want to start a business together.\n\nIf either of these describe you, then it is a great time to think about forming an entity. Typically, I recommend forming an entity as the first step in any new business.\n\nIf you started your business already and have not yet formed your company, don\u2019t panic. You can form one now.\n\nThe most common entity that content creators form is an LLC, or a limited liability company. For the purposes of this article, we will focus on the LLC, although there are other options out there.\n\nPlease speak to an attorney and a tax professional to see which entity is right for you.\n\n<img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-9715 size-mv_create_no_ratio\" src=\"https:\/\/www.mediavine.com\/wp-content\/uploads\/2019\/02\/blogging-735x490.png\" alt=\"Woman using a laptop computer at a cafe.\" width=\"735\" height=\"490\" srcset=\"https:\/\/www.mediavine.com\/wp-content\/uploads\/2019\/02\/blogging-735x490.png 735w, https:\/\/www.mediavine.com\/wp-content\/uploads\/2019\/02\/blogging-441x294.png 441w, https:\/\/www.mediavine.com\/wp-content\/uploads\/2019\/02\/blogging-768x512.png 768w, https:\/\/www.mediavine.com\/wp-content\/uploads\/2019\/02\/blogging-690x460.png 690w, https:\/\/www.mediavine.com\/wp-content\/uploads\/2019\/02\/blogging.png 800w\" sizes=\"auto, (max-width: 735px) 100vw, 735px\" \/>\n<h3>Why on earth do I need an LLC? What exactly is an LLC?<\/h3>\nThe beauty (yes, I said beauty) of an LLC is that it is a corporate form that provides its owners with limited liability.\n\nThis means that, if the owners properly set up and maintain the LLC, the owners will not be personally liable for the LLC\u2019s liabilities. It effectively shields the LLC owners\u2019 personal assets from LLC creditors.\n\nThis benefit is important for individuals who either have substantial personal assets or are running a business that has the potential to be sued or incur debt. LLCs also provide the owners with an added layer of legitimacy for the business as clients and potential partners often prefer to do work with a company, rather than an individual.\n<h3>How do you form and file for an LLC?<\/h3>\nAn LLC is formed by filing paperwork with the state where you do business and paying a filing fee. You may also have to obtain a business license, comply with other state requirements or pay a franchise tax.\n\nEach state has different requirements, but you will usually file a document called the Articles of Organization or a Certificate of Formation.\n\nSome states allow you to file the documentation online and others require it to be mailed in. Please research your state\u2019s requirements before filing.\n\nFor the formation paperwork, you will typically need to know the name of your LLC, the names and addresses of the members, the business and\/or mailing address of the LLC, and the name of the LLC\u2019s registered agent.\n\nThe members are the owners of the LLC. If there is more than one member you will want to assign a percentage of membership, which is each member\u2019s ownership interest in the LLC.\n\nIf you have a physical address, like an office, for your business, you should use that address as your business and mailing address. However, many content creators work from a home office and have concerns about their address becoming a part of the public record.\n\nSome states allow you to use a P.O. Box for your mailing address, but it is important to confirm if your state does.\n\n<img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-9422 size-mv_create_no_ratio\" src=\"https:\/\/www.mediavine.com\/wp-content\/uploads\/2019\/02\/google-search-735x490.jpg\" alt=\"Laptop computer open to the Google search bar home page.\" width=\"735\" height=\"490\" srcset=\"https:\/\/www.mediavine.com\/wp-content\/uploads\/2019\/02\/google-search-735x490.jpg 735w, https:\/\/www.mediavine.com\/wp-content\/uploads\/2019\/02\/google-search-441x294.jpg 441w, https:\/\/www.mediavine.com\/wp-content\/uploads\/2019\/02\/google-search-768x512.jpg 768w, https:\/\/www.mediavine.com\/wp-content\/uploads\/2019\/02\/google-search-690x460.jpg 690w, https:\/\/www.mediavine.com\/wp-content\/uploads\/2019\/02\/google-search.jpg 800w\" sizes=\"auto, (max-width: 735px) 100vw, 735px\" \/>\n<h3>What is something that all LLCs must have?<\/h3>\nAll LLCs must have a registered agent who is physically located in the state where you are incorporating. This person (or entity) will receive service of process on your behalf if you are a party to a lawsuit or receive a summons.\n\nYou may act as your own registered agent or you can use a third-party service, which often charges an annual fee. In most states you cannot use a third-party registered agent\u2019s address to also serve as your mailing address.\n\nFinally, although most states do not require it, it is highly recommended that you draft an operating agreement for your LLC. This is particularly important if there is more than one member.\n\nThe operating agreement is the document that governs the terms of the LLC and will detail, among other things, each member\u2019s voting rights, division of profits, the sale or membership interests and dissolution. Having an operating agreement allows the members to choose the terms of the LLC, rather than having to comply with the default rules set by each state.\n\nFinally, an operating agreement is further evidence that the LLC is a legitimate business.\n\nAn LLC is a great way to protect your personal assets and give your business legitimacy, without an overly complicated formation process. Be sure to consult an attorney who is versed in entity formation if you have any questions.<\/section>\r\n\r\n\r\n\r\n<section class=\"wp-block-group has-global-padding is-layout-constrained wp-block-group-is-layout-constrained\" style=\"margin-top:0\">\r\n<div class=\"wp-block-group has-global-padding is-layout-constrained wp-container-core-group-is-layout-09aec4f2 wp-block-group-is-layout-constrained\" style=\"margin-top:var(--wp--preset--spacing--40);padding-top:var(--wp--preset--spacing--50);padding-right:0;padding-bottom:var(--wp--preset--spacing--60)\">\r\n<p class=\"is-style-small is-style-small--3\">About the author<\/p>\r\n\r\n\r\n<div style=\"margin-top:var(--wp--preset--spacing--20);\" class=\"wp-block-post-author\"><div class=\"wp-block-post-author__avatar\"><img alt='' src='https:\/\/secure.gravatar.com\/avatar\/e3220aded17a2f76bff75294b4d13f344d81294787c0a43b7aa017ba65d79008?s=96&#038;d=blank&#038;r=g' 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We&#8217;ve all seen the headlines questioning the future of organic search, the impact on creators&#8217; livelihoods and content ownership, the challenge of&#8230;<\/p>\n\t\t\t<\/div>\n\t<a href=\"https:\/\/www.mediavine.com\/blog\/5-ways-chatgpt-increase-productivity\/\" class=\"c-post-card__link-overlay\" aria-label=\"Read more about 5 Ways Bloggers Can Use ChatGPT to Increase Productivity\"><\/a>\n<\/article>\n\t<\/div>\n<\/aside>\r\n<\/div>\r\n","protected":false},"excerpt":{"rendered":"<p>Back to Blog \u2022 At Mediavine, we&#8217;re all about content creators building sustainable businesses. As that business scales, influencers must legally protect themselves, their audience and their intellectual property. You know when we start throwing around terms like &#8216;intellectual property&#8217;, it&#8217;s time to call a lawyer. We&#8217;ve asked attorney and friend of Mediavine Jamie Lieberman&#8230;<\/p>\n","protected":false},"author":44459,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_searchwp_excluded":"","footnotes":""},"categories":[60],"tags":[],"audience_post":[],"class_list":["post-13254","post","type-post","status-publish","format-standard","hentry","category-general-blogging"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>What is an LLC and How Does it Work? - Mediavine<\/title>\n<meta name=\"description\" content=\"At Mediavine, we&#039;re all about content creators building sustainable businesses. Why on earth do I need an LLC? 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