Welcome to the business side of creating! The most common question creators ask is, "Do I need to start a company?" Let's clear that up right now.

The answer is simple: When you start, you don't need to do anything. But as you grow, making a smart choice about your business structure is key.

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What's the biggest thing that worries you about the "business" side of being a creator?

Here's the great news: The moment you start earning money, you are automatically a Sole Proprietor. This is the default business structure. You and your brand are legally one and the same.

You don't need to file any paperwork to become a sole proprietor. It just happens. This is how 99% of creators begin their journey.

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Does knowing this remove some of the pressure to have everything figured out at the start?

Being a Sole Proprietor is perfect for your early stages. It's simple, free, and lets you focus on what matters most: creating great content and building a community.

However, it has one major drawback: there is no legal separation between you and your business. Your personal assets (like your car or savings) could be at risk if your business gets sued.

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Can you think of a type of content (e.g., giving advice) that might have a higher risk of legal issues?

So, when should you "level up" from a Sole Proprietor to something more protective, like an LLC (Limited Liability Company)?

There are a few key "triggers." An LLC creates a protective wall between your business and personal life. If your business is sued, only the business's assets are at risk, not your personal ones.

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Which sounds more important to you as you grow: maximum simplicity or maximum protection?

Here are the most common triggers for forming an LLC: