As a creator, your brand is a reflection of you. It’s your art, your business, and your livelihood. But have you ever considered what your customers see on their bank statements when they buy your content? For many creators, the answer is a surprise: their personal name.
This can be a major privacy concern, not just for you but for your customers. In an industry where discretion is key, a charge from “Jane Smith” instead of “Exclusive VIP Content” can create a real problem. The solution? Setting up a business entity, like an LLC.
This guide will explain why your personal name appears on statements, the powerful benefits of creating a business, and how you can take the simple steps to protect your personal privacy and build a more professional brand.
The Reality: Why Your Personal Name Appears on Customer Statements
When you operate as a sole proprietor (which is the default if you haven’t formally registered a business), your personal name is legally tied to all your business activities. For many mainstream payment processors, this means your legal name is used as the billing descriptor—the name that appears on a customer’s bank statement.
For a customer who values their privacy, seeing a personal name on their statement can be shocking and even embarrassing, leading to disputes or chargebacks. This is an avoidable risk that can be easily solved by separating your business identity from your personal identity.
The LLC Advantage: Privacy, Protection, and Professionalism
Forming a business entity, most commonly a Limited Liability Company (LLC), is one of the smartest moves you can make as a creator. It’s a formal, legal step that offers you significant benefits.
1. Privacy
An LLC allows you to operate under a business name, which will appear on your customers’ bank statements. This means a customer will see a discreet, professional name like “Studio Productions LLC” or “Creative Art Inc.” instead of your personal name. This not only protects your personal privacy but also offers a layer of privacy for your customers.
2. Legal Protection
The “Limited Liability” in LLC is a critical benefit. It means that the business is considered a separate legal entity from you as an individual. If your business were to ever be sued (for example, in a dispute over a contract or a customer complaint), your personal assets—like your house, car, or personal bank accounts—are generally protected. This is a foundational step in risk management for any serious business owner.
3. Professionalism
Operating under a registered business name makes you look and feel more professional. It shows you’re committed to your craft and taking your business seriously. This can build trust with your audience and potential partners.
A Simple Guide to Setting Up Your LLC
The process of forming an LLC is much simpler than you might think. While you can hire a lawyer to do it for you, many creators use an online legal service, which can be done in a few easy steps.
- Choose a Name: Pick a unique name for your business. It should not be a name that is already in use by another company.
- File Your Articles of Organization: This is the main document you file with your state’s Secretary of State office. It typically costs a few hundred dollars.
- Get an EIN (Employer Identification Number): This is a unique nine-digit number assigned by the IRS to a business entity. You can get one for free on the IRS website in minutes. Think of it as a Social Security Number for your business.
- Open a Business Bank Account: Once your LLC is registered and you have your EIN, you can open a separate bank account for your business. This is a non-negotiable step. Never mix your personal and business finances, as it can undo the legal protection an LLC offers.
Other Privacy Tips for Your Business
While an LLC is the biggest step you can take, here are a few other tips to enhance your privacy and professionalism.
- Get a Business Email Address: Use an email address associated with your website domain (e.g.,
support@yourdomain.com). This is more professional than a personal email address. - Use a Business Address: Consider using a P.O. Box or a virtual mailbox service instead of your home address for any business correspondence.
- Discreet Packaging (for Merch): If you sell physical products, use discreet, plain packaging that doesn’t reveal the contents or the nature of your business.
Conclusion
Your safety and privacy are paramount. While the initial thought of setting up a business entity might feel overwhelming, the benefits—from protecting your identity to securing your assets—are well worth the effort. By taking these steps, you not only create a more private and secure business but also lay the foundation for a professional, long-term brand.
