Does my Podcast Need an LLC?

Podcasting is a great equalizer. There are low barriers to entry and everyone has something to say. I love podcasts and listen to at least a few every day while walking my dog or commuting. I am so happy that so many people take the time to share their passions, interests, and knowledge publicly and for free. They are so ubiquitous that it might be surprising to learn that your podcast should absolutely have an LLC.

What?! Why does my podcast need an LLC?

If you’ve been around here long, you know that an LLC is a Limited Liability Company and that it can provide you protection by separating your personal liability from your business’s liability. This is crucial for protecting your personal assets like your house, car, or investments from being used to pay your business’s debts.

But my podcast doesn’t even advertise, do I still need an LLC?

You should definitely still consider it. Your business doesn’t need to be profitable to need liability protection. 

What about if my podcast is about garden sculptures wearing knitted sweaters and only my grandma listens?

Even niche podcasts benefit from limited liability protection. Because the fact of the matter is the protection isn’t about your business as much as it is about you and your personal assets. You form an LLC to protect the stuff you personally own from being used to pay business debts. Your podcast even if it is teeny tiny is a business and forming an LLC is an important step towards treating it seriously and protecting yourself.

What kind of trouble could my podcast be in?

Well, for example, if one day you are in a flow you say something about another person that they find offensive, insulting, and untrue, you might be liable for slander depending on the circumstances. 

Or have you ever played music on your podcast or do you like to include audio clips? If you do, you might be infringing on the creator’s copyright. It is best practice to license all audio from reputable sources but even clips that you think are in the public domain or royalty-free could get you in trouble if used incorrectly.

Are there any other reasons why I should have an LLC for my podcast? 

Yes, besides the limited liability which is a genius move, you’ll definitely want an LLC if your podcast involves more than just you. Multiple hosts or producers make having a podcast easier and more fun but what happens if you disagree on something for the show? What if one of you wants to leave and take the audience with you? Who owns the intellectual property? 

This might sound extreme but we have all seen friendships or partnerships disintegrate. An LLC Operating Agreement - check out the one in my template shop if you need help - will cover exactly what to do in those circumstances. It is the rulebook for your podcast business.

With an LLC, you will have enhanced credibility. The LLC signifier will demonstrate to listeners that you are a serious business and an authority in your subject matter. Likewise, it signals to potential guests that you organized and treating podcasting as business which makes them more inclined to give you some of their time and come on your show.

A bonus of having an LLC for your podcast is that it might be more tax-efficient if you do have sponsors or make money through it. 

Do you need an LLC to start a podcast? No, it is not required but it absolutely makes business sense to set one up. Especially, since registering as an LLC is easy to DIY and pretty affordable - only $50-$200 in most cases - to do. 

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Here’s a quick guide to LLC registration for your podcast but check out my other articles for more details.

1. Choose a name and check its availability for your state. Your state business page will have an easy-to-use search database. Be sure to include “LLC” or “Limited Liability Company” as part of your chosen name,

2. Choose a state for formation - it is often best to use your home state but check with a lawyer for your unique circumstances.

3. Appoint a registered agent to receive official business documents. This can be you! Or there are professional services that you can hire for a fee.

4. Next, you will need to file Articles of Organization which provide basic business information like name, address, and purpose with your Secretary of State. This is often a standard form and can often be uploaded through your state website.

5. After you file your AoO, you will need to have an LLC Operating Agreement. This is the rulebook that your business will follow. You write your own, customize one from my template shop, or your state will apply its default rules to you. 

6. While you don’t need an EIN to have a registered LLC, once you create your LLC it is smart to also register for an EIN. This will allow you to open a business bank account, hire employees, and generally help keep your personal business separate from your business.

But remember creating an LLC is not enough. You also need to act like an LLC. That means following your operating agreement, observing business formalities, and keeping your personal finances separate from your business accounts. 

Setting up an LLC can often be completed in less than an hour and it shouldn’t cost a lot of money to do it. There is a huge potential benefit in establishing limited personal liability, clear operating guidelines, and enhanced credibility, and, to be honest, not much downside. 

Although your podcast may be a passion project or a side hustle, it is a smart move to consider having an LLC to ensure your personal protection. Besides, you never know if your podcast is going to become the next My Favorite Murder and absolutely blow up and it’s best to be ready.

THIS ARTICLE IS NOT A SUBSTITUTE FOR LEGAL ADVICE AND IS OFFERED FOR INFORMATIONAL PURPOSES ONLY. EVERY SITUATION IS UNIQUE AND YOU SHOULD CONSULT A LOCAL ATTORNEY FOR ADVICE ON YOUR PARTICULAR CIRCUMSTANCES.