What is a DBA and How Does it Work?
October 1, 2024
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.
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Have you ever wondered how to become a successful streamer and earn money on platforms like Kick? You’re not alone. According to Statista, the video game and streaming market has grown tremendously in recent years, with millions of young people looking for ways to monetize their content and achieve influencer fame like Westcol. In 2022 alone, the global video game market generated over $203.1 billion, and streaming platforms are expected to capture a significant share of this huge pie.
Kick has emerged as a strong player in the streaming world, offering favorable conditions for content creators, such as allowing them to keep 95% of subscription revenue. However, if you truly want to take full advantage of this platform and earn more money with fewer hassles, there’s a trick that many don’t know: creating a company in the United States to receive your payments from Kick.
Below, I’ll explain why you should consider this strategy to maximize your earnings and accelerate your path to success as a streamer.
When you receive payments from platforms like Kick, you’re likely facing high taxes in your country of residence, especially if you’re in Latin America. Many countries impose high tax rates on individual income, which can significantly reduce your earnings.
By creating a company in the United States, you can optimize your tax situation. U.S. companies, especially LLCs (Limited Liability Companies), are pass-through entities, meaning in many cases, you won’t pay corporate-level taxes if the income is distributed to the owners. And if you’re not a U.S. resident, these earnings may be exempt from federal taxes. This allows you to maximize your net earnings and reduce the taxes you would pay as an individual in your home country.
For example, if you currently pay 30% in taxes in your country and decide to structure your income through a U.S. LLC, you could see a significant reduction in what you pay, leaving more money in your pocket.
By operating as a company, you’ll have access to tax deductions that aren’t available to individuals. Did you buy a new PC to improve the quality of your streams? Did you spend money on cameras, microphones, or editing software? All of these expenses can be deducted as business expenses, further reducing your tax obligations.
Some categories of expenses you can deduct include:
This not only helps you reduce taxes but also gives you more flexibility to reinvest in your growth as a content creator.
One of the biggest challenges of receiving payments in Latin American countries is the devaluation of the local currency. The U.S. dollar, on the other hand, is much more stable and strong, meaning receiving your payments directly in dollars protects you from the impact of inflation or the devaluation of local currencies like the Colombian peso or the Peruvian sol.
By having a company in the United States, you can receive your Kick payments in a U.S. bank account, allowing you to preserve the value of your earnings and avoid losing money due to unfavorable currency conversions. Additionally, platforms like Kick, PayPal, and Stripe are designed to work with U.S. accounts, making the payment and management process even easier.
Operating a company in the U.S. also opens the door to better financial services. From business credit cards with exclusive benefits to the ability to access business loans that you can use to invest in your growth as a streamer, the U.S. financial system offers opportunities that simply aren’t available in many Latin American countries.
For example, you could access low-interest credit lines that allow you to finance new equipment, hire staff, or increase your production without having to rely solely on your current income.
Receiving international payments can be a headache, especially in some Latin American countries where banking systems are less agile and more expensive. By creating a company in the U.S., you not only avoid many of these issues but also receive your Kick payments faster and with fewer fees.
Instead of dealing with long wait times or costly currency conversions, a U.S. account allows you to receive your earnings immediately and manage them in a strong, stable currency. Payment platforms like PayPal and Stripe work better with U.S. bank accounts, simplifying the entire process.
Finally, having a company makes it easier to scale your streaming activity. As you grow and start generating more income, you can hire staff, outsource services like video editing, and manage your brand more efficiently. This allows you to focus on what really matters: creating quality content and continuing to grow as an influencer.
If you really want to earn more money and succeed as a streamer on Kick, creating a company in the United States is the key to maximizing your earnings, protecting your assets, and projecting a professional image that will open doors to new opportunities. Not only will you benefit from a more favorable tax system, but you’ll also be able to receive and manage your payments in dollars, without the complications and fees associated with international transfers.
If you want to create your company in the United States, contact us and receive a free consultation with our experts.
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