Why a legal form as an influencer?
It’s been a little quieter about influencer marketing over the past month. However, this does not mean that there are no things to consider when travelling commercially as an influencer. This starts with the observance of the current case law on the topic of content marketing (more on this regarding the highly acclaimed Court of Appeal decision here , the advertising of events here or also about Cathy Hummels here) and goes over the problem that many influencers hardly deal with issues such as proper compliance with taxes, competition law or even business planning.
As an influencer, one should not ignore the issue. The risks I name in the blog continue to exist for the most part, and especially those who already make money on social networks like Instagram would do well to have their own appearance professionally accompanied. There are also many reasons to shape a legal form from one’s own influencer existence, for example, and to handle sponsorship deals and other matters. This facilitates many things, such as hiring employees, the tax treatment of contractors and clients, cooperation with other influencers, the professional impression of larger sponsors and, at the end of the day, the Liability.
What is the right legal form?
Which legal form is the right one must be decided on the basis of the future planning, one’s own business plan (yes, one should also have an influencer), one’s own business knowledge and other points. German law has special rules for all forms of activity and all legal forms, as well as the activity as a sole trader, have advantages and disadvantages. There is usually no right or wrong here. Unlike many thinking, there are rarely alternatives to the same facts/needs.
My consultations on the subject therefore often include training on fundamental topics such as data protection, copyright and competition law, as well as tips & tricks in dealing with authorities, taxes and many other topics. Only if you as an influencer have all the information and are aware of your own future, you can also make the right decision regarding risk or cost. For example, it also plays a role, which tasks I want to take on myself.
- Do I want to deal with all tax law issues myself, as described in this article?
- Do I want to arrange sponsorship deals myself, negotiate and shape the contracts?
- Do I want to shoot photos and videos myself?
Maybe hire a professional?
Or do I want to focus on what I do well, namely to inspire followers and fans with great and interesting content, in this way increase my reach and, in the long term, also sales?
Entrepreneurship/self-employment also wants to be learned. And mistakes that you can make yourself in the future, others have already made before you and can prevent them from repeating themselves 😉
My advice is therefore always to deal with matters such as public authorities, taxation, law, business, contracts and the like. Even if you don’t really feel like it. You will be grateful for the fact that you have done it in a few years’ time.