Should I Start an LLC for My Online Dating Consulting Business?

Starting a limited liability company (LLC) for your online dating consulting 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 an online dating consulting business, lawsuits can arise from things like taking out a bank loan that you cannot pay back by the term date or consultants who give customers poor advice that negatively impacts their life.

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

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

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Do I Need an LLC for an Online Dating Consulting Business?

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

You should start 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 an Online Dating Consulting Business

By starting an LLC for your online dating consulting 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.

Online dating consulting businesses will benefit from liability protection because of the risk of professional liability, trademark infringement, and other general business risks.

Example 1: In order to afford the startup cost for your online dating consulting business, you decide to take out a bank loan. However, after your business never seems to take off, you begin to realize it will be impossible for you to repay this loan. As such, the bank decides to bring a lawsuit against your business for defaulting on this loan. Limited liability would protect you from being held personally responsible.

Example 2: One of the designers of your website consistently fails to meet deadlines, which prompts you to fire him. Unhappy with this decision, the designer decides to bring a lawsuit against your business for wrongful dismissal, maintaining that he was fired in a manner that breached his contract. In any situation, your personal assets are safe from being used to satisfy damages that your business may be required to pay the plaintiff.

Example 3: One of the employees of your online dating consulting business gives objectively poor advice to a client that results in him suffering a difficult divorce from his wife. Believing that your business has failed to adequately satisfy its duty of care prompts the client to sue your business for negligence. Your personal assets would be safe from any requirement to pay compensation.

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 an Online Dating Consulting 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 an online dating consulting 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

Online dating consulting 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?

All businesses need insurance to protect their business assets — even LLCs. This is because the limited liability protection from an LLC protects your personal assets, not your business assets.

Due to the nature of the online dating consulting industry, your LLC is faced with numerous unique liabilities (e.g., disgruntled clients, etc.) it needs to protect its assets from.

Common Situations Business Insurance May Cover for an Online Dating Consulting Business

Example 1: While touring your office, a potential investor rounds a corner, collides with one of your employees, breaks an arm in the resulting fall, and demands you pay for his medical treatment. General liability insurance would cover his medical bills.

Example 2: A competitor sues your business for libel. While you disagree with the claim, you know you need to hire an attorney immediately. General liability insurance would pay for your legal fees and any required settlement.

Example 3: When a reporter visits your place of business to conduct an interview, she slips on wet tiles in the restroom, breaks a wrist, and decides to sue because you didn’t display a warning sign near the wet floor. General liability insurance would pay for your legal defense and any required settlement.

Other Types of Coverage Online Dating Consulting 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 online dating consulting businesses should obtain.

Professional Liability Insurance

While you strive to provide advice and recommendations that will improve your clients’ online dating experiences, there’s always a chance someone might decide your professional guidance caused them harm. If a client sues your business for negligence, professional liability insurance would cover your legal fees and any required settlement.

Commercial Property Insurance

You made a major investment in the equipment, supplies, and real estate you use to conduct your consulting work. In the event of a fire, theft, or natural disaster, commercial property insurance would cover the cost of repairing or replacing your business-related property. This includes structural damage to your building as well as the business materials you store there.

Workers’ Compensation Insurance

If you have any employees, most states will require you to carry workers’ compensation insurance for your 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 workplace 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 and professional liability insurance.

Read our Online Dating Consulting Business Insurance article for more info.

Very little initial capital is required in order to start your online dating consulting business. One of the main reasons for this is that it is not a requirement to rent an office for your business activities. Indeed, this money is far better invested in a company website, as well as internet marketing.

Visit our How to Start an Online Dating Consulting Business guide to learn more about the costs of starting and maintaining this business.

The ongoing expenses of running an online dating consulting business include website maintenance, marketing, utilities, office supplies, and insurance.

Learn more about running an online dating consulting business.

Online dating consulting businesses make money by charging a fee for access to their services. They can offer packaged services or charge per hour.

Learn more about starting an online dating consulting business.

Online dating consultants help people navigate the complicated online dating world. The online dating industry market is expected to reach $3.6 billion by the end of 2025. Expanding internet accessibility and the use of smartphones are driving growth in the online dating market.

Learn more about starting an online dating consulting business.