LLC for Social Media Managers: How to Register Your Business

As a freelance social media manager, you’re probably busy juggling social media calendars, tweaking ad strategies, and making sure that engagement metrics are on point.

But here’s something you might not have thought about yet — what happens when you land that big client, or if a campaign doesn’t go as planned, and suddenly, your personal finances are on the line? Yeah, it happens.

That’s where an LLC (Limited Liability Company) can help. It’s like giving your freelance business a much-needed upgrade and support.

Whether you’re consulting for brands or managing social media on the side of your 9-to-5, an LLC helps you separate your personal assets from your business. 

In other words, if something goes south with a client, your savings, your house, or your car aren’t up for grabs. 

Additionally, operating as an LLC can increase professional credibility, making you appear more legitimate to potential clients, particularly larger or corporate ones.

Thinking it might be time to level up? 

Let’s dive into why an LLC could be the best move for your social media management gig and how you can get it done. And if you want to talk to our LLC experts right away, book a free consultation now.

What Are the Benefits of an LLC?

An LLC offers several perks for freelancers like you, such as:

👉 Limited liability protection: Your personal assets (home, car, savings) are shielded if your business faces legal issues.

👉 Tax flexibility: You can opt to be taxed as a sole proprietor, partnership, or even a corporation.

👉 Professional credibility: Being a registered business boosts your credibility with clients.

👉 Separate finances: An LLC helps you keep your personal and business finances distinct, which is important for tax season.

Read more: What Type of Business Entity Should You Form?

How to Start An LLC in 11 Steps (2024 Guide)

Now, let’s walk you through how to start an LLC in just 11 simple steps.

Step 1: Choose Your Business Name

The fun (and sometimes tricky) part. Your LLC needs a unique business name that stands out but also adheres to your state’s naming rules. Most states don’t allow the same name for two businesses, and there may be restrictions on certain words (like “bank” or “insurance”).

Pro Tip: Brainstorm a few variations and check your state’s LLC registry to ensure availability. You can also run a quick Google search to see if the domain name is available — it’s always smart to align your website name with your LLC.

Step 2: File Articles of Organization

Once you’ve nailed down your business name, the next step is to file your Articles of Organization with your state’s Secretary of State office. This is essentially the document that officially creates your LLC. The form asks for:

👉 Your LLC’s name

👉 The registered agent’s name (the person or company who will receive legal documents for your business)

👉 The LLC’s address

👉 Member details (if it’s just you, you’ll be the sole member)

Heads up: Filing fees vary by state, typically ranging from $50 to $500. Some states allow you to file online, while others require a mailed-in form.

Step 3: Designate a Registered Agent

Every LLC needs a registered agent—someone designated to receive important legal and tax documents on behalf of your business. As an independent social media manager, you can be your own registered agent, or you can hire a registered agent service.

Why bother with a registered agent service? If you’re busy and don’t want to miss crucial documents (or you just don’t want to give your home address), a registered agent service ensures you’re covered. 

Deep Dive: The Crucial Role of a Registered Agent in Your Business

Step 4: Create an Operating Agreement

Not every state requires an Operating Agreement, but it’s a good idea to have one. An Operating Agreement outlines how your LLC will be managed and who owns what. Even if you’re the only member of the LLC, this document helps maintain your limited liability status.

For solo social media managers, it can include details like:

✅ Ownership percentages (if you’re bringing on partners later)

✅ How decisions are made

✅ Rules for adding new members

Think of it as a roadmap for your LLC’s operations.

Step 5: Obtain an EIN (Employer Identification Number)

Even if you don’t plan on hiring employees, you’ll need an Employer Identification Number (EIN). Think of it as your business’s Social Security number. You’ll need it for taxes and, more importantly, for opening a business bank account.

The only guide you’ll ever need on an EIN: How to Apply for an EIN

Step 6: Register for State and Local Taxes

Depending on your state, you may need to register for state taxes, especially if you sell physical goods or offer taxable services. As a social media manager, most of your services might not fall under taxable goods, but you’ll still want to check.

Additionally, some states require you to pay annual fees or franchise taxes to keep your LLC in good standing. Consult a CPA from doola who can help you navigate the options and choose the best tax structure for your company.  

Step 7: Set Up a Business Bank Account

Here’s where many social media managers drop the ball — setting up a separate business bank account. Mixing your personal and business finances is a big no-no. Not only does it make tax time a nightmare, but it also puts your limited liability protection at risk.

If your finances are intermingled, a court could decide that your LLC isn’t a separate entity, which could jeopardize your personal assets.

Here’s how to open a business bank account:

✅ Pick the right bank: Many banks offer small business accounts with perks like low fees, online banking, and integrations with accounting software.

✅ Gather your documents: You’ll need your EIN, LLC Articles of Organization, and Operating Agreement to open an account.

✅ Separate everything: Use your business account for all business-related expenses and income. This step is key for staying organized come tax time.

We at doola recommend a bank like Mercury for lower fees. In addition, Mercury allows non-US founders to open a US bank account remotely without visiting the US.

Step 8: Obtain the Necessary Licenses and Permits

Depending on where you live, you may need a business license or permit to operate legally. For instance, some local governments require home-based businesses to apply for a special permit. Be sure to check with your local city or county clerk’s office to see what’s required.

Also, if you plan on working with clients across state lines, you might need additional permits or licenses, especially for social media advertising.

Step 9: Maintain Your LLC’s Good Standing

Registering your LLC is just the beginning. To keep your business in good standing, you’ll need to meet a few ongoing requirements, including:

📌 Annual reports: Some states require you to file an annual report with updated information about your LLC.

📌 Annual fees: You’ll need to pay your state’s annual LLC fee, which can range from $50 to several hundred dollars.

📌 Taxes: Keep your tax filings up to date. Many freelancers overlook quarterly estimated tax payments, which can lead to hefty penalties.

Step 10: Protect Your Business with Insurance

Even though an LLC provides limited liability protection, it doesn’t cover everything. Consider getting business insurance, especially if you work with large clients or handle sensitive data.

There are a few types of insurance to consider:

✅ General liability insurance: Covers legal fees or damages if you’re sued.

✅ Professional liability insurance: Also known as errors and omissions insurance, this covers you if a client claims you didn’t deliver the agreed-upon services.

✅ Cyber liability insurance: As a social media manager, you likely handle client data. This insurance protects you from potential cyberattacks or data breaches.

Step 11: Hire Bookkeeping Advisors and Tax Consultants

Managing your LLC’s finances can get overwhelming, especially when tax season rolls around. Instead of juggling everything on your own, it’s worth investing in a bookkeeping advisor and tax consultant to help keep your business finances in order. 

Hiring these professionals ensures that your books are accurate and up to date, and your taxes are filed properly — saving you from potential headaches (and fines).

Key Points to Consider Before Hiring

✅ Budget: Before anything else, assess your budget. Bookkeepers and tax consultants come at different price points, so it’s important to determine how much you’re willing to invest. You can hire a freelancer or an agency depending on your budget.

✅ Experience: Make sure the advisor or consultant you hire has experience working with LLCs, particularly with freelancers or small business owners. You want someone who understands your specific needs as an independent social media manager.

✅ Reputation and Reviews: Always check for reviews or testimonials before hiring. A trustworthy bookkeeper or tax consultant will have positive feedback from clients who’ve benefited from their services.

✅ Availability: You need someone who will be available when you need them, especially during tax season. Confirm their schedule and response times before signing any contract.

Protect your financial future:  When to Hire a Tax Attorney: Consider These Things First

Mistakes No One Talks About When Registering an LLC

We’ve all heard the basics about forming an LLC — registering your name, filing the right paperwork, and choosing a registered agent. But there are some mistakes that no one really talks about, and they can trip you up if you’re not paying attention. 

Let’s break down the ones that don’t always make it into those “how-to” guides but can make or break your LLC success.

1. Not Thinking About Long-Term Business Goals

Most people form an LLC based on their immediate needs, like liability protection or tax benefits, but what about your long-term business vision? If you’re planning to scale — maybe you’ll hire a team or expand your services internationally — your LLC should be structured to grow with you. 

Locking yourself into a structure that doesn’t support growth could lead to unnecessary costs and restructuring later. It’s worth discussing your 5-year goals with a business advisor before committing.

2. Not Accounting for Personal Liability Through Contracts

You formed an LLC, so you’re protected, right? Not entirely. If you don’t use clear, well-drafted contracts with your clients, you could still be personally liable for any issues that arise. A poorly written contract can expose you to personal risk, even if your business is an LLC. 

Make sure your contracts outline deliverables, expectations, and terms of service. And yes, get a lawyer to draft or review them before you send them off.

3. Ignoring Intellectual Property (IP) Protection

Social media managers often work with creative assets — custom graphics, slogans, branding elements—but many don’t take steps to protect their intellectual property. Registering your business name as an LLC doesn’t automatically give you trademark rights to that name or your logo. 

Not securing your IP early on can lead to copycats or legal issues if someone else trademarks your work. Look into trademarking your business name or any unique content you create to avoid future conflicts.

4. Underestimating the Cost of Compliance

Everyone talks about the initial filing fees, but what about the ongoing costs of keeping your LLC in compliance? States charge annual fees, and you may need to file periodic reports, pay franchise taxes, or renew your business licenses. 

These costs can sneak up on you, especially if you’re operating on a lean budget. Missing a payment or report can result in penalties, fines, or even losing your LLC status. Budget for these annual expenses from day one.

5. Forgetting About Liability Insurance

LLC formation is not a catch-all safety net. While an LLC protects your personal assets, it won’t stop lawsuits from targeting your business itself. That’s where business liability insurance comes in. Many people assume forming an LLC means they don’t need insurance, but that’s not true.

 If a client sues you for damages related to a social media campaign or breach of contract, insurance is what’s going to cover your legal fees and settlements — not the LLC itself.

6. Filing in a Different State Without Understanding the Consequences

You’ve probably heard about how it’s cheaper to form an LLC in states like Delaware or Nevada because of tax advantages.

But here’s the catch: If you’re doing business in a different state — say, where you actually live — you’ll still need to register your LLC in that state as a foreign LLC, which comes with its own fees and compliance requirements. 

The costs of maintaining an out-of-state LLC can sometimes outweigh the benefits, especially if you’re a small, local business.

7. Relying Solely on DIY Formation Services

Those budget-friendly online services that promise to set up your LLC in minutes? They’re tempting, but they often provide the bare minimum, leaving you to figure out the rest.

Sure, they’ll file your Articles of Organization, but will they help you draft a proper operating agreement, check for local licenses, or ensure your tax setup is optimized for your situation?

Skimping on professional advice might save you some cash upfront but cost you big down the road.

8. Not Planning for Disputes (Even if You’re Solo)

No one likes to think about disagreements or disputes, but they happen. What if you take on a business partner down the line, or bring in contractors to help scale your business?

Your Operating Agreement should have a clear dispute resolution process in place, even if you’re currently a solo LLC. 

Otherwise, if things go south, you’ll be left navigating legal waters without a paddle.

9. Not Keeping Personal and Business Relationships Separate

This one’s a little sensitive. A lot of solo social media managers build their businesses on personal relationships—friends, family, referrals—and they often mix those relationships with their business.

While it seems harmless, mixing personal and business relationships can lead to blurred boundaries. 

If things go wrong, like a client (who’s also a friend) refuses to pay, it can get messy fast. Treat every client relationship professionally, no matter how close you are.

How Can doola Help You?

If all this sounds like too much to handle, you can always use an LLC formation service. Here at doola we offer packages that handle everything — from filing your Articles of Organization to getting your EIN.

Some services even include registered agent services and assistance with opening a business bank account, saving you a ton of time.

Would you like to know more of how you could benefit from our support? 

Book a free consultation with us today and see how we can help you succeed!