What is a DBA and How Does it Work?
Understand what a DBA is, how to obtain it, who needs it, and the key differences between a DBA and other legal structures like LLCs and corporations.
The world of video games has experienced explosive growth in recent years, and Twitch has become one of the most important platforms for gamers. Currently, there are millions of active gamers worldwide streaming their games on Twitch, Facebook, YouTube, and TikTok.
According to recent data, an average gamer can earn between $3,000 and $5,000 per month, which translates to annual income of $36,000 to $60,000. Among the most notable influencers on the platform is WestCol, who has managed to capture a large audience due to his gaming skills and ability to interact with other influencers or content creators.
Twitch offers multiple benefits to gamers, including the ability to monetize their content through subscriptions, donations, ads, and sponsorships. Twitch payments are made monthly and can be transferred directly to bank accounts. However, to maximize these earnings and reduce tax burden, many gamers opt to create a company in the United States, where tax conditions are more favorable compared to Latin America.
Subscriptions are one of the main sources of income for streamers on Twitch. Viewers can subscribe to a channel for a monthly fee, which is usually $4.99, $9.99, or $24.99. Twitch takes a portion of these fees, but the rest goes directly to the streamer.
Viewers can make direct donations to streamers through PayPal or similar services. These donations can vary in amount and are an effective way to support content creators.
Streamers can earn money by showing ads during their streams. Ad revenue depends on the number of viewers and the length of the ads.
Popular streamers often attract sponsors and brand collaborations. These deals can be very lucrative and provide significant additional income.
Many streamers sell branded merchandise, such as t-shirts, hats, and other items, to their followers. This is another effective way to generate income and strengthen personal branding.
Twitch has a well-structured payment system that ensures streamers receive their earnings on time. Payments are processed monthly and streamers receive their money about 15 days after the month ends. Payment methods include direct bank transfers, PayPal, and checks, depending on the streamer's preference.
Tax Withholdings by Country
Twitch Payment System in the United States
Twitch in the United States has a well-structured payment system that ensures streamers receive their earnings on time. Payments are processed monthly, and streamers receive their money approximately 15 days after the month ends. Payment methods include direct bank transfers, PayPal, and checks, depending on the streamer's preference.
Advantages of Twitch Payment System in the United States
Monetizing on Twitch as a gamer is a real and viable opportunity for many content creators. Through subscriptions, donations, ads, sponsorships, and merchandise sales, streamers can generate significant income. However, to maximize these earnings and optimize tax obligations, creating a U.S. company is a recommended strategy. With an adequate legal structure and available tax advantages, gamers can ensure their financial and professional success in the long term.
At Prodezk, we offer our personalized service at every stage of the way, ensuring a hassle-free experience and successful registration for your company in the U.S.