Alright, let’s dive straight into it. OnlyFans, the platform everyone’s talking about, isn’t just about posting content and hoping for the best. It’s become a business model for thousands, and some creators are asking, “Should I turn my OnlyFans account into a full-fledged company?” Well, let’s break it down and see if this is a good move or just another big headache.
So, What’s the Deal with OnlyFans?
If you’ve been living under a rock (or maybe just avoiding social media), OnlyFans is an online platform where creators can post exclusive content for their fans, who subscribe to access it. In 2020, over 120 million users joined OnlyFans, and the numbers only grew after that. The site is especially popular with adult content creators, though anyone can join.
You don’t have to be a mega-celebrity to make good money. In fact, the top earners on the platform (like Blac Chyna, who earned around $20 million in 2020) show that it’s possible to turn this into a serious business. But here’s the twist—some creators are opting to set up a company rather than running things solo. So, is this something you should consider too?
The Pros: Why You Might Want to Make it Official
Let’s start with the good stuff. Running an OnlyFans account is fun, but setting up a company could actually make things a lot easier.
1. Tax Benefits and Deductions
If you set up a business, there are some sweet tax perks. Running a business means you can deduct work-related expenses. For example, any tech gear, software, or even travel expenses related to your content creation can be written off. If you’re buying cameras, lighting equipment, or even hiring someone to edit your videos, that’s money back in your pocket!
Did you know that in 2021, small businesses in the U.S. deducted nearly $400 billion in business expenses? Yeah, that’s a lot of cash saved. If you’re making significant money on OnlyFans, these deductions can make a huge difference.
2. Professionalism and Branding
Running your OnlyFans as a business makes you look more legit. People respect companies, and having a brand behind your content makes you more appealing to potential subscribers. Plus, a strong brand gives you the chance to scale. You can expand into other areas like merch or even collaborate with other businesses.
Take a creator like Charli XCX, who made the transition from an individual content creator to a brand ambassador. Charli used her platform to start branching out and creating different streams of revenue. She proved that with the right mindset, you can turn your solo hustle into a multi-faceted brand.
3. Liability Protection
When you’re working as a business, your personal assets are better protected. You’re not personally liable for any issues that arise from the business side of things. If someone decides to sue your OnlyFans company, your personal bank account and home aren’t on the line.
For example, in 2019, a lawsuit was filed against a popular OnlyFans creator for breach of contract. If that creator had been operating under a business, their personal finances would have been safer.
4. Financial Management
Running a business means you’ll have to keep better track of your income and expenses. But here’s the silver lining: it’ll help you stay on top of your financial game. No more mixing personal and business funds. Plus, you’ll be able to reinvest profits into growing your brand.
The Cons: Why You Might Want to Skip the Whole Business Thing
Okay, let’s get real. As tempting as it might sound to start a company, there are some downsides to consider.
1. The Price of Starting a Business
Setting up a company isn’t free, and the costs can pile up. Filing fees, accountant fees, legal fees—they add up fast. In the U.S., it can cost anywhere between $100 and $1,000 to register a business, depending on the state. Not to mention, you’ll need to pay for ongoing expenses, like annual filing fees and accounting services.
For example, in California, the annual fee to maintain an LLC (Limited Liability Company) is $800. And that’s just the beginning!
2. Complex Taxes
With a business, your taxes are no longer simple. You’ll have to file business taxes, which can be tricky if you’re not an expert in accounting. Depending on how much you make, you could face higher taxes and have to deal with extra paperwork. Tax filing for a business can be a lot more time-consuming than just paying your personal income taxes.
In 2020, small business owners in the U.S. spent an average of 13 hours per month on accounting tasks. Imagine what you could do with all that time if you weren’t buried in spreadsheets.
3. Additional Time and Effort
Running a company takes work. A lot of work. You’ll have to manage the business side of things (and maybe even hire employees) while continuing to create content. This could pull you away from your creative process. You might find yourself doing admin tasks instead of filming or editing videos.
Let’s not forget about marketing, branding, and customer service—activities that are crucial to keeping your business running smoothly.
4. Legal Risks
Adult content creation is a heavily regulated industry. As a business owner, you’ll need to be on top of age verification, contracts, copyright laws, and more. In 2021, there were numerous legal challenges regarding adult content, with platforms like https://onlyfans-models.top/ even threatening to ban explicit content before reversing the decision. Running a business means you need to be compliant with every law, which can be time-consuming and sometimes stressful.
In 2021, OnlyFans had to pay millions in fines to settle legal issues with creators and contractors. Operating a business could expose you to similar risks if you don’t keep up with the rules.
Should You Go the Business Route?
Alright, here’s the big question: should you turn your OnlyFans hustle into a business? The truth is, it depends on your goals.
If you’re making serious cash (think over $100k a year), running a business might make sense. It’ll give you the chance to grow and protect yourself legally and financially. Plus, you’ll have the ability to hire a team and scale.
On the other hand, if you’re just starting out or don’t want to deal with the complexity of taxes, employees, and other business stuff, it might be better to keep it simple and fly solo.
Final Thoughts
At the end of the day, it’s all about what you want to achieve. If you’re passionate about growing your brand and turning your OnlyFans into a legit business, go for it. But if you prefer to focus solely on content creation, running a business might be more stress than it’s worth.
Just remember: in 2022, creators earned an average of $180 per month on OnlyFans, but the top 1% earned over $100,000 a month! Whether you start a company or not, there’s plenty of potential to earn big—but you need to know what works for you.
So, what’s your move?