Should I Start an LLC for My Blogging Business?

Starting a limited liability company (LLC) for your blogging business can provide several benefits.

Most importantly, an LLC structure offers limited liability to its owners, which can protect their personal assets from lawsuits and creditors.

For a blogging business, lawsuits can arise from things like libel allegations, copyright infringements, and payment disputes with any contracted writers.

LLCs are also affordable, highly flexible (from a tax point-of-view), and can make your blogging business seem more credible.

Recommended: Use Northwest to form an LLC for $29 (plus state fees).

Do I Need an LLC for a Blogging Business?

LLCs are a simple and inexpensive way to protect your personal assets and save money on taxes.

You should form an LLC when there's any risk involved in your business and/or when your business could benefit from tax options and increased credibility.

LLC Benefits for a Blogging Business

By starting an LLC for your blogging business, you can:

Protect your savings, car, and house with limited liability protection
Have more tax benefits and options
Increase your business’s credibility

Limited Liability Protection

LLCs provide limited liability protection. This means your personal assets (e.g., car, house, bank account) are protected in the event your business is sued or if it defaults on a debt.

Blogging businesses will benefit from liability protection because of the risk of lawsuits for libel and trademark infringement.

Example 1: After one of your employed writers infringes on a much bigger blogger's copyrighted content, your LLC becomes the target of a copyright infringement lawsuit. Given your business’s LLC classification, you understand that your company’s debt will not transfer to you personally, regardless of what happens in court.

Example 2: You decide to hire a full-time writer to assist you with your blogging business. In the interview, you tell her that you’re happy to pay her a salary of at least $3,000 per week. Even though both parties agree, you decide to offer a slightly lower pay rate in the employee’s contract since this is something that you will be able to sustain more easily. When they find this out, they state that the former agreement supersedes the latter and threaten to file a breach of contract claim against your company. Since your business is registered as an LLC, you cannot be held personally liable regardless of how the claim progresses.

Example 3: You agree to let a third-party blogger publish 10 articles a week on your blog for a fixed fee of $2,000. After having second thoughts, you message them and let them know that you’ll have to renege on your promise, as you want to keep the content of your blog personal and authentic. If a lawsuit emerges as a result of a breach of a verbal contract, your personal assets will remain protected.

Example 4: Another blogger accuses you of plagiarizing his work and sues you for infringement.

An LLC will also protect your personal assets in the event of commercial bankruptcy or loan default.

To maintain your LLC's limited liability protection, you must maintain your LLC's corporate veil.

LLC Tax Benefits and Options for a Blogging Business

LLCs, by default, are taxed as a pass-through entity, just like a sole proprietorship or partnership. This means that the business's net income passes through to the owner's individual tax return.

The business’s net income is then subject to income taxes (based on the owner's tax bracket) and self-employment taxes.

Sole proprietorships and partnerships are taxed in a similar way to LLCs, but they do not offer limited liability protection or other tax options.

S Corp Option for LLCs

An S corporation (S corp) is an IRS tax status that an LLC can elect. S corp status allows business owners to be treated as employees of the business (for tax purposes).

S corp tax status can reduce self-employment taxes and will allow business owners to contribute pre-tax dollars to 401k or health insurance premiums.

The S corp status requires that the business pay the employee-owner(s) a reasonable salary for the work they perform.

In addition, the business might need to spend more on accounting, bookkeeping, and payroll services. To offset these costs, you'd need to be saving about $2,000 a year on taxes.

We estimate that if a blogging business owner can pay themselves a reasonable salary and at least $10,000 in distributions each year, they could benefit from S corp status.

You can start an S corp when you form your LLC. Our How to Start an S Corp guide will lead you through the process.

Credibility and Consumer Trust

Blogging businesses rely on consumer trust. Credibility plays a key role in creating and maintaining any business.

Businesses gain consumer trust simply by forming an LLC.

A growing business can also benefit from the credibility of an LLC when applying for small business loans, grants, and credit.

Northwest will start an LLC for you for just $29 (plus state fees).

Get Started

How to Form an LLC

Forming an LLC is easy. There are two options for forming your LLC:

You can hire a professional LLC formation service to set up your LLC for a small fee
Or, you can choose your state from the list below to start an LLC yourself

Select Your State

For most new business owners, the best state to form an LLC in is the state where you live and where you plan to conduct your business.

Do LLCs Need Insurance?

LLCs need to have business insurance in order to safeguard their business assets against foreseeable financial harm.

This is because the limited liability offered by an LLC structure protects the owner’s personal assets, not the business’s. If you want to protect your blogging business’s assets as well (e.g., company software, business website, computers, etc.), you will need to purchase business insurance.

Common Situations Business Insurance May Cover for a Blogging Business

Example 1: While visiting the home of someone you want to interview for your blog, you stumble over her cat, fall into a large television, and smash it along with other nearby equipment. General liability insurance would cover the cost of repairing the interviewee’s damaged property.

Example 2: A competitor claims your latest marketing efforts have libeled his business. While you disagree with the claim, you want to hire an attorney immediately. General liability insurance would cover your legal defense costs.

Example 3: Another blogger accuses you of plagiarizing his work and plans to take legal action against you. General liability insurance will pay for your legal fees and any required settlement.

Other Types of Coverage Blogging Businesses Need

While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some other types of insurance all bloggers should obtain:

Professional Liability Insurance

While you strive to ensure your blog provides accurate information and helpful advice, there’s always a chance someone might decide your professional work caused them harm. In the event of a lawsuit claiming negligence due to your mistakes, professional liability insurance would cover your legal fees and any required settlement.

Commercial Property Insurance

You made a major investment in the hardware, software, and other equipment needed to run your blogging business. If you own the building in which you operate, commercial property insurance would cover the cost of repairing or replacing your business-related property in the event of a fire, theft, or natural disaster. This includes structural damage to your building as well as the business equipment you store there.

Workers’ Compensation Insurance

If you have any employees, most states will require you to carry workers’ compensation insurance for both part-time and full-time workers. This coverage protects your employees if they become injured at work or fall ill after a work-related accident. It not only covers an employee’s medical bills and lost wages if they need time to recover but also any disability or death benefits stemming from a work-related accident.

Commercial Umbrella Insurance

While your general liability insurance policy covers most claims, some accidents or lawsuits may be so catastrophic that they threaten to exhaust the limits of your primary coverage. Commercial umbrella insurance protects you from paying out-of-pocket for any legal fees and awarded damages that exceed your primary policy.

Should I Start an LLC FAQ

Choosing the right business structure depends on your business’s unique circumstances and needs. However, unless your business is very low risk (like a hobby), an LLC is likely the better option.

Visit our LLC vs. Sole Proprietorship guide to learn more.

At a minimum, you’ll need general liability insurance.

Read our Blogging Business Insurance article for more info.

Starting a blogging business is extremely affordable and really only requires:

A strong internet connection
A business website
Hosting and a domain name
A work laptop or computer

When you are starting out, you can easily work from your home, meaning that you won’t have to waste any capital on renting an office.

Visit our How to Start a Blogging Business guide to learn more about the costs of starting and maintaining this business.

Domain renewal and hosting represent the main ongoing expenses. Blogging businesses also may have ongoing advertising costs to help drive more traffic to their sites.

Learn more about running a blogging business.

A blogging business can make money in several ways, including hosting ads, using affiliate links, selling digital products (e.g., courses), or selling memberships to readers.

Learn more about starting a blogging business.

A blogging business provides content in a specific topic area meant to entertain, inform, or do both. Bloggers build audiences by providing content over time. A popular blog can earn considerable income from advertising, affiliate links, and other revenue-generating tactics.

Learn more about starting a blogging business.