{"version":"1.0.0","segments":[{"speaker":"Sarah","startTime":0.0,"endTime":2.19,"body":"In today's episode,"},{"speaker":"Sarah","startTime":0.0,"endTime":2.19,"body":"you'll learn whether you should"},{"speaker":"Sarah","startTime":2.19,"endTime":8.25,"body":"create an LLC for your podcast."},{"speaker":"Sarah","startTime":2.19,"endTime":8.25,"body":"Welcome to Podcasting Q\u0026A, where"},{"speaker":"Sarah","startTime":8.25,"endTime":11.13,"body":"you'll learn the best tips and"},{"speaker":"Sarah","startTime":8.25,"endTime":11.13,"body":"strategies to launch, grow and"},{"speaker":"Sarah","startTime":11.13,"endTime":13.83,"body":"monetize your podcast. This"},{"speaker":"Sarah","startTime":11.13,"endTime":13.83,"body":"week's question comes from"},{"speaker":"Sarah","startTime":13.83,"endTime":14.28,"body":"Jared."},{"speaker":"Jared","startTime":14.489,"endTime":17.549,"body":"Hi, this is Jared Hocking"},{"speaker":"Jared","startTime":14.489,"endTime":17.549,"body":"hosted the all things connected"},{"speaker":"Jared","startTime":17.549,"endTime":20.729,"body":"podcast. I love your show and"},{"speaker":"Jared","startTime":17.549,"endTime":20.729,"body":"find it very useful. Thank you"},{"speaker":"Jared","startTime":20.729,"endTime":23.729,"body":"for all that you're doing. At"},{"speaker":"Jared","startTime":20.729,"endTime":23.729,"body":"what point does it make sense to"},{"speaker":"Jared","startTime":23.729,"endTime":27.779,"body":"incorporate your podcast as a"},{"speaker":"Jared","startTime":23.729,"endTime":27.779,"body":"business or 501c3? For examp"},{"speaker":"Jared","startTime":27.779,"endTime":30.179,"body":"e, if you're spending money"},{"speaker":"Jared","startTime":27.779,"endTime":30.179,"body":"on advertising, that could be co"},{"speaker":"Jared","startTime":30.179,"endTime":33.239,"body":"sidered a business expen"},{"speaker":"Jared","startTime":30.179,"endTime":33.239,"body":"e. If it's an educational podca"},{"speaker":"Jared","startTime":33.239,"endTime":35.789,"body":"t, it could be a nonpr"},{"speaker":"Jared","startTime":33.239,"endTime":35.789,"body":"fit. Do you have any advic"},{"speaker":"Jared","startTime":35.789,"endTime":37.079,"body":"here? Thank you."},{"speaker":"Sarah","startTime":37.469,"endTime":40.619,"body":"Thanks for your question,"},{"speaker":"Sarah","startTime":37.469,"endTime":40.619,"body":"Jared. Now, before we start"},{"speaker":"Sarah","startTime":40.619,"endTime":44.639,"body":"today's episode, just a"},{"speaker":"Sarah","startTime":40.619,"endTime":44.639,"body":"disclaimer, we are not legal or"},{"speaker":"Sarah","startTime":44.639,"endTime":49.469,"body":"tax experts around here we are"},{"speaker":"Sarah","startTime":44.639,"endTime":49.469,"body":"podcasters. But we have formed a"},{"speaker":"Sarah","startTime":49.469,"endTime":55.229,"body":"few LLCs in our time. So first,"},{"speaker":"Sarah","startTime":49.469,"endTime":55.229,"body":"let's take a look at the 501c3"},{"speaker":"Sarah","startTime":55.229,"endTime":61.739,"body":"Now a 501c3 does give you tax e"},{"speaker":"Sarah","startTime":55.229,"endTime":61.739,"body":"empt status. However, there are"},{"speaker":"Sarah","startTime":61.769,"endTime":64.229,"body":"a lot more legal requireme"},{"speaker":"Sarah","startTime":61.769,"endTime":64.229,"body":"ts and paperwork that you have"},{"speaker":"Sarah","startTime":64.229,"endTime":68.399,"body":"o fill out and file to be able t"},{"speaker":"Sarah","startTime":64.229,"endTime":68.399,"body":"start and maintain one. So b"},{"speaker":"Sarah","startTime":68.399,"endTime":72.539,"body":"cause of the challenge"},{"speaker":"Sarah","startTime":68.399,"endTime":72.539,"body":"for most podcasters, it's actu"},{"speaker":"Sarah","startTime":72.539,"endTime":79.289,"body":"lly easier to form an LLC. Let'"},{"speaker":"Sarah","startTime":72.539,"endTime":79.289,"body":"go over the basics of what an L"},{"speaker":"Sarah","startTime":79.289,"endTime":83.609,"body":"C actually is. So LLC stands fo"},{"speaker":"Sarah","startTime":79.289,"endTime":83.609,"body":"limited liability company,"},{"speaker":"Sarah","startTime":83.609,"endTime":87.419,"body":"hich is an agreement between y"},{"speaker":"Sarah","startTime":83.609,"endTime":87.419,"body":"u the owner, and the business,"},{"speaker":"Sarah","startTime":87.449,"endTime":91.139,"body":"the podcast. So the idea is t"},{"speaker":"Sarah","startTime":87.449,"endTime":91.139,"body":"separate your personal"},{"speaker":"Sarah","startTime":91.169,"endTime":94.589,"body":"ssets from your business"},{"speaker":"Sarah","startTime":91.169,"endTime":94.589,"body":"ssets. So there's a layer of"},{"speaker":"Sarah","startTime":94.589,"endTime":97.469,"body":"rotection there, which we'll get"},{"speaker":"Sarah","startTime":94.589,"endTime":97.469,"body":"to later in this episode."},{"speaker":"Sarah","startTime":97.469,"endTime":101.759,"body":"es, there are also tax benefits,"},{"speaker":"Sarah","startTime":97.469,"endTime":101.759,"body":"like you can deduct marketing"},{"speaker":"Sarah","startTime":101.759,"endTime":104.789,"body":"costs and production costs. So"},{"speaker":"Sarah","startTime":101.759,"endTime":104.789,"body":"in theory, when it comes tim"},{"speaker":"Sarah","startTime":104.789,"endTime":108.509,"body":"to file your taxes, you're pa"},{"speaker":"Sarah","startTime":104.789,"endTime":108.509,"body":"ing less of it. That being sai"},{"speaker":"Sarah","startTime":108.509,"endTime":112.619,"body":", it doesn't mean it's the right"},{"speaker":"Sarah","startTime":108.509,"endTime":112.619,"body":"choice for you. So before yo"},{"speaker":"Sarah","startTime":112.619,"endTime":116.159,"body":"go and spend gobs of money on"},{"speaker":"Sarah","startTime":112.619,"endTime":116.159,"body":"legal expert or tax expert an"},{"speaker":"Sarah","startTime":116.159,"endTime":119.849,"body":"trying to start filing th"},{"speaker":"Sarah","startTime":116.159,"endTime":119.849,"body":"paperwork, let's take a look at"},{"speaker":"Sarah","startTime":119.849,"endTime":122.399,"body":"some questions that you shoul"},{"speaker":"Sarah","startTime":119.849,"endTime":122.399,"body":"consider before filing LL"},{"speaker":"Sarah","startTime":122.429,"endTime":128.849,"body":". So question number one is do"},{"speaker":"Sarah","startTime":122.429,"endTime":128.849,"body":"you want your podcast to be mor"},{"speaker":"Sarah","startTime":128.849,"endTime":133.319,"body":"than just a hobby? So in other"},{"speaker":"Sarah","startTime":128.849,"endTime":133.319,"body":"ords, are you planning to moneti"},{"speaker":"Sarah","startTime":133.319,"endTime":136.979,"body":"e your podcast? Are you plann"},{"speaker":"Sarah","startTime":133.319,"endTime":136.979,"body":"ng to make some money from your"},{"speaker":"Sarah","startTime":136.979,"endTime":141.689,"body":"show? And if the answer is"},{"speaker":"Sarah","startTime":136.979,"endTime":141.689,"body":"yes, then it might be a good id"},{"speaker":"Sarah","startTime":141.689,"endTime":145.409,"body":"a to form an LLC so that you"},{"speaker":"Sarah","startTime":141.689,"endTime":145.409,"body":"an take advantage of those tax"},{"speaker":"Sarah","startTime":145.409,"endTime":151.859,"body":"benefits. Question number tw"},{"speaker":"Sarah","startTime":145.409,"endTime":151.859,"body":", is your podcast meant to"},{"speaker":"Sarah","startTime":151.919,"endTime":155.219,"body":"upport or is a part of your exis"},{"speaker":"Sarah","startTime":151.919,"endTime":155.219,"body":"ing business. So for example,"},{"speaker":"Sarah","startTime":155.219,"endTime":157.709,"body":"et's say you have a consultin"},{"speaker":"Sarah","startTime":155.219,"endTime":157.709,"body":"business, and you want to s"},{"speaker":"Sarah","startTime":157.709,"endTime":160.589,"body":"art a podcast as a marketing"},{"speaker":"Sarah","startTime":157.709,"endTime":160.589,"body":"tool to help you generate"},{"speaker":"Sarah","startTime":160.589,"endTime":162.899,"body":"eads and hopefully customers"},{"speaker":"Sarah","startTime":160.589,"endTime":162.899,"body":"for your consulting business."},{"speaker":"Sarah","startTime":162.899,"endTime":166.139,"body":"Now, in this case, if you don't"},{"speaker":"Sarah","startTime":162.899,"endTime":166.139,"body":"already have an LLC for your"},{"speaker":"Sarah","startTime":166.139,"endTime":169.109,"body":"onsulting business, it's prob"},{"speaker":"Sarah","startTime":166.139,"endTime":169.109,"body":"bly good idea to form one and h"},{"speaker":"Sarah","startTime":169.109,"endTime":172.439,"body":"ving a podcast is even more of a"},{"speaker":"Sarah","startTime":169.109,"endTime":172.439,"body":"reason to create an LLC. Ques"},{"speaker":"Sarah","startTime":172.439,"endTime":178.619,"body":"ion number three, is your show"},{"speaker":"Sarah","startTime":172.439,"endTime":178.619,"body":"have a co host? Or is it part o"},{"speaker":"Sarah","startTime":178.619,"endTime":182.609,"body":"a podcast network? Now if yo"},{"speaker":"Sarah","startTime":178.619,"endTime":182.609,"body":"'re flying solo, your podcast i"},{"speaker":"Sarah","startTime":182.609,"endTime":185.249,"body":"just a hobby, you're not reall"},{"speaker":"Sarah","startTime":182.609,"endTime":185.249,"body":"sure what you want to do with i"},{"speaker":"Sarah","startTime":185.249,"endTime":189.299,"body":". The whole question of whethe"},{"speaker":"Sarah","startTime":185.249,"endTime":189.299,"body":"nice Ukraine LLC can be left t"},{"speaker":"Sarah","startTime":189.299,"endTime":193.409,"body":"the side for now. However,"},{"speaker":"Sarah","startTime":189.299,"endTime":193.409,"body":"f you have a co host, or your s"},{"speaker":"Sarah","startTime":193.469,"endTime":197.099,"body":"ow is part of a podcast n"},{"speaker":"Sarah","startTime":193.469,"endTime":197.099,"body":"twork, forming an LLC will give"},{"speaker":"Sarah","startTime":197.249,"endTime":199.799,"body":"you a framework in which to"},{"speaker":"Sarah","startTime":197.249,"endTime":199.799,"body":"avigate that relations"},{"speaker":"Sarah","startTime":199.799,"endTime":202.289,"body":"ip. So you can both really un"},{"speaker":"Sarah","startTime":199.799,"endTime":202.289,"body":"erstand what your legal rig"},{"speaker":"Sarah","startTime":202.289,"endTime":205.259,"body":"ts are and give you a lot more"},{"speaker":"Sarah","startTime":202.289,"endTime":205.259,"body":"larity. So for example,"},{"speaker":"Sarah","startTime":205.259,"endTime":209.459,"body":"o you and your co host have 50/5"},{"speaker":"Sarah","startTime":205.259,"endTime":209.459,"body":"ownership stake? What happens"},{"speaker":"Sarah","startTime":209.459,"endTime":212.219,"body":"o the money that you earn? Or"},{"speaker":"Sarah","startTime":209.459,"endTime":212.219,"body":"if you're part of a podcast"},{"speaker":"Sarah","startTime":212.219,"endTime":215.249,"body":"etwork? Does the Podcast"},{"speaker":"Sarah","startTime":212.219,"endTime":215.249,"body":"etwork own part of your show? Wh"},{"speaker":"Sarah","startTime":215.249,"endTime":217.949,"body":"t happens to the profits"},{"speaker":"Sarah","startTime":215.249,"endTime":217.949,"body":"r the money that you earn? Th"},{"speaker":"Sarah","startTime":217.949,"endTime":221.759,"body":"n? These are all question"},{"speaker":"Sarah","startTime":217.949,"endTime":221.759,"body":"that are really useful to answe"},{"speaker":"Sarah","startTime":221.759,"endTime":225.449,"body":"before you enter into any busi"},{"speaker":"Sarah","startTime":221.759,"endTime":225.449,"body":"ess relationship. Question"},{"speaker":"Sarah","startTime":227.999,"endTime":231.209,"body":"number four, has your show bee"},{"speaker":"Sarah","startTime":227.999,"endTime":231.209,"body":"around for a long time? Or"},{"speaker":"Sarah","startTime":231.209,"endTime":235.019,"body":"are you just starting out? lik"},{"speaker":"Sarah","startTime":231.209,"endTime":235.019,"body":"we mentioned earlier, an LLC i"},{"speaker":"Sarah","startTime":235.259,"endTime":238.739,"body":"to provide a protecti"},{"speaker":"Sarah","startTime":235.259,"endTime":238.739,"body":"e barrier between you the owne"},{"speaker":"Sarah","startTime":238.739,"endTime":243.329,"body":"and the business, the podcast."},{"speaker":"Sarah","startTime":238.739,"endTime":243.329,"body":"So the idea is it reduces"},{"speaker":"Sarah","startTime":243.329,"endTime":246.959,"body":"our liability in case somethin"},{"speaker":"Sarah","startTime":243.329,"endTime":246.959,"body":"happens it's out of your con"},{"speaker":"Sarah","startTime":246.989,"endTime":250.409,"body":"rol. Now if you're just starting"},{"speaker":"Sarah","startTime":246.989,"endTime":250.409,"body":"out and you don't have a lot of"},{"speaker":"Sarah","startTime":250.409,"endTime":253.109,"body":"listeners, so the chances"},{"speaker":"Sarah","startTime":250.409,"endTime":253.109,"body":"f that happening isn't that hig"},{"speaker":"Sarah","startTime":253.109,"endTime":256.619,"body":". Now However, if your show has"},{"speaker":"Sarah","startTime":253.109,"endTime":256.619,"body":"been around for a long time, yo"},{"speaker":"Sarah","startTime":256.619,"endTime":259.439,"body":"have a lot of subscrib"},{"speaker":"Sarah","startTime":256.619,"endTime":259.439,"body":"rs and listeners or even a h"},{"speaker":"Sarah","startTime":259.439,"endTime":262.949,"body":"ge fan base for your show, th"},{"speaker":"Sarah","startTime":259.439,"endTime":262.949,"body":"n it might be a good idea to"},{"speaker":"Sarah","startTime":262.949,"endTime":269.279,"body":"orm an LLC just in case somethin"},{"speaker":"Sarah","startTime":262.949,"endTime":269.279,"body":"does happen. Question number f"},{"speaker":"Sarah","startTime":269.279,"endTime":273.179,"body":"ve, do the benefits outweigh"},{"speaker":"Sarah","startTime":269.279,"endTime":273.179,"body":"the costs? Yes, forming an LLC c"},{"speaker":"Sarah","startTime":273.179,"endTime":276.449,"body":"n reduce your tax burden l"},{"speaker":"Sarah","startTime":273.179,"endTime":276.449,"body":"ke if you wanted to duck tha"},{"speaker":"Sarah","startTime":276.449,"endTime":280.529,"body":"new microphone that you got"},{"speaker":"Sarah","startTime":276.449,"endTime":280.529,"body":"ut don't forget filing and main"},{"speaker":"Sarah","startTime":280.529,"endTime":283.919,"body":"aining LLC also comes with its"},{"speaker":"Sarah","startTime":280.529,"endTime":283.919,"body":"own costs, right there's"},{"speaker":"Sarah","startTime":283.919,"endTime":287.669,"body":"filing fee for your state. I"},{"speaker":"Sarah","startTime":283.919,"endTime":287.669,"body":"could even be fees for the atto"},{"speaker":"Sarah","startTime":287.669,"endTime":291.149,"body":"ney to help you file these do"},{"speaker":"Sarah","startTime":287.669,"endTime":291.149,"body":"uments. If you need a Register"},{"speaker":"Sarah","startTime":291.149,"endTime":294.509,"body":"d Agent that might come with its"},{"speaker":"Sarah","startTime":291.149,"endTime":294.509,"body":"own fees. If you want to creat"},{"speaker":"Sarah","startTime":294.509,"endTime":297.239,"body":"a separate address or have a p"},{"speaker":"Sarah","startTime":294.509,"endTime":297.239,"body":"el box for your business"},{"speaker":"Sarah","startTime":297.239,"endTime":300.269,"body":"that comes with addition"},{"speaker":"Sarah","startTime":297.239,"endTime":300.269,"body":"l fees or If you're really u"},{"speaker":"Sarah","startTime":300.269,"endTime":302.579,"body":"sure what you need to deduct i"},{"speaker":"Sarah","startTime":300.269,"endTime":302.579,"body":"your business, and you need to"},{"speaker":"Sarah","startTime":302.579,"endTime":306.779,"body":"onsult an accountant or a CPA th"},{"speaker":"Sarah","startTime":302.579,"endTime":306.779,"body":"t comes with its own fees, so"},{"speaker":"Sarah","startTime":306.779,"endTime":311.549,"body":"all of that can really add up."},{"speaker":"Sarah","startTime":306.779,"endTime":311.549,"body":"o if you're just looking"},{"speaker":"Sarah","startTime":311.549,"endTime":315.539,"body":"o deduct a couple $100 from you"},{"speaker":"Sarah","startTime":311.549,"endTime":315.539,"body":"business, it might not be the b"},{"speaker":"Sarah","startTime":315.539,"endTime":318.179,"body":"st idea. However, you're p"},{"speaker":"Sarah","startTime":315.539,"endTime":318.179,"body":"anning to do something like lau"},{"speaker":"Sarah","startTime":318.179,"endTime":321.539,"body":"ching a course or monetizi"},{"speaker":"Sarah","startTime":318.179,"endTime":321.539,"body":"g your podcast in a much big"},{"speaker":"Sarah","startTime":321.539,"endTime":325.229,"body":"er way than creating an LLC can"},{"speaker":"Sarah","startTime":321.539,"endTime":325.229,"body":"e a great idea."},{"speaker":"Sarah","startTime":327.81,"endTime":330.84,"body":"Ultimately, there are a lot of"},{"speaker":"Sarah","startTime":327.81,"endTime":330.84,"body":"factors to consider whether or"},{"speaker":"Sarah","startTime":330.84,"endTime":334.08,"body":"not you should create an LLC for"},{"speaker":"Sarah","startTime":330.84,"endTime":334.08,"body":"your podcast. Now, it's really"},{"speaker":"Sarah","startTime":334.08,"endTime":336.93,"body":"difficult to tell what your"},{"speaker":"Sarah","startTime":334.08,"endTime":336.93,"body":"individual needs are. So your"},{"speaker":"Sarah","startTime":336.93,"endTime":340.5,"body":"best course of action is to find"},{"speaker":"Sarah","startTime":336.93,"endTime":340.5,"body":"a local attorney who can walk"},{"speaker":"Sarah","startTime":340.5,"endTime":343.8,"body":"you through the option so that"},{"speaker":"Sarah","startTime":340.5,"endTime":343.8,"body":"you can make the best decision"},{"speaker":"Sarah","startTime":343.8,"endTime":346.23,"body":"for you and your show. Thanks"},{"speaker":"Sarah","startTime":343.8,"endTime":346.23,"body":"for sending us your question,"},{"speaker":"Sarah","startTime":346.23,"endTime":348.6,"body":"Jared. Now if you have a"},{"speaker":"Sarah","startTime":346.23,"endTime":348.6,"body":"question you'd like for us to"},{"speaker":"Sarah","startTime":348.6,"endTime":351.96,"body":"answer in a future episode of"},{"speaker":"Sarah","startTime":348.6,"endTime":351.96,"body":"the show head to speakpipe.com/B"},{"speaker":"Sarah","startTime":351.99,"endTime":354.9,"body":"zzsprout or click on the link in"},{"speaker":"Sarah","startTime":351.99,"endTime":354.9,"body":"the show notes and leave a brief"},{"speaker":"Sarah","startTime":354.9,"endTime":358.77,"body":"audio message. Podcast"},{"speaker":"Sarah","startTime":354.9,"endTime":358.77,"body":"ng Q\u0026A is available both video a"},{"speaker":"Sarah","startTime":358.77,"endTime":362.13,"body":"d audio format. If you'd like vi"},{"speaker":"Sarah","startTime":358.77,"endTime":362.13,"body":"eo, please subscribe to the Buz"},{"speaker":"Sarah","startTime":362.13,"endTime":365.19,"body":"sprout YouTube channel. And if"},{"speaker":"Sarah","startTime":362.13,"endTime":365.19,"body":"ou prefer audio Podcast"},{"speaker":"Sarah","startTime":365.34,"endTime":368.79,"body":"ng Q\u0026A is available on your fa"},{"speaker":"Sarah","startTime":365.34,"endTime":368.79,"body":"orite podcast app. That's"},{"speaker":"Sarah","startTime":369.03,"endTime":372.18,"body":"t for today. Thanks for listeni"},{"speaker":"Sarah","startTime":369.03,"endTime":372.18,"body":"g and as always keep podcast"},{"speaker":"Sarah","startTime":372.21,"endTime":373.05,"body":"ng"}]}