The adult industry is generally considered risky, but the rewards of hitting that entrepreneurial g-spot are always enticing. For proof, look no further than MindGeek — PornHub’s parent company — which has an estimated worth of $1.69 billion.
And given that you’re here, chances are that you’ve asked yourself how to start a porn company at least once. We will answer that question in full, along with everything that it includes:
- Why start a porn company?
- Picking a business model
- The process of starting a porn company
- Setting up your website
Why Start a Porn Company?
Like any good dildo, the adult industry is huge and always in demand. To illustrate, more than 1.4 billion hours were spent watching porn just in April of 2020, and six of the current 50 most popular websites in the world are porn sites.
That means that your potential audience will be wider than Lana Rhoades’ butthole after a triple anal scene, and just as unlikely to contract. Wherever you can find horny people, you’ll always find growth potential — between the legs or elsewhere.
Now, while there’s no way to be sure about the industry’s actual size, most realistic estimates place it between six and fifteen billion dollars. That’s one juicy piece of ass, and if you want a piece, you’ll have to start a company.
However, before your company can start squirting cash into your wallet, you’ll need to figure out a business model. That choice will affect how much you’ll need to invest, how much money you’ll be making and how consistently, and more.
Picking a Business Model
Most porn companies fall under one of the five major categories:
- Free sites where you make money through ads (e.g. XVideos)
- Paid sites where you earn via subscriptions (e.g. AdultTime)
- Porn producers that create and sell their own content (e.g. Brazzers)
- Adult marketplaces (e.g. Kinkie)
- Personal porn star companies (e.g. Ariana Marie’s official website)
No matter the type of company you go with, though, you’ll absolutely want a reliable adult payment processor. There’s no turn-off like being unable to withdraw your money.
Free Tube Site
As the most common type of porn company in the world, these allow users to freely upload their content — typically videos — on the company website for others to enjoy. Users typically do so without compensation, out of a simple desire to share what they love.
If you have a favorite porn site, chances are that it’s running this business model. Notable examples include XVideos, XNXX, and xHamster.
Pornhub also used to be a member of the club, but nowadays, only verified models can upload their content.
Monetization
Even though they’re mostly free to use, successful tube sites make buckets of money via ads.
For instance, the aforementioned Pornhub — the big dick daddy of the bunch — shows four to five ads per video. Multiply that by an average of 115 to 130 million visits per day, and you can see how the site made a whopping 460 million dollars in 2018!
If those numbers are making your mouth water, you’ll appreciate our guide on the best adult ad networks on the web.
Ads aren’t the only monetization method for free tube sites, though. Some also have premium subscription options — typically for around $10 per month — letting users pay if they want to access perks such as:
- The ability to browse an ad-free version of the website
- Access to exclusive, premium content
- For uploaders, the option to promote their uploads on the site’s homepage
Expenses
Despite having the word free in its name, a tube site will require a fair bit of spending to stay up and erect on the net.
Aside from the usual legal fees of starting a company (which we’ll get into later), these expenses will include the upfront costs of making your porn site (typically around $6000, or much less if you decide to use a premade template), followed by upkeep. In fact, this mandatory upkeep will usually make up most of your total expenses with this business model.
So, what numbers are we talking about?
For website maintenance, you can expect to pay around $1,000 per year. However, tube sites’ high storage requirements will spike your hosting expenses more than any other business model on our list.
The fact that you’ll be hosting thousands, tens of thousands, or perhaps even hundreds of thousands of videos makes it difficult to accurately assess your future tube site’s total costs. For reference, though, an hour of 1080p content takes up around 3GB of space, and it can all add up pretty quickly as your project gains traction and your users share their goods.
So, you’ll want to look into adult servers with at least 2TB of storage capacity ― and that’s just to start with. If you need help in that regard, we suggest reaching out to Vicetemple’s support team. They’ll help you figure out exactly how much storage you’ll need, and even create a custom plan for you — price quote included!
Advantages
As explained above, tube sites have a sizable advantage over other porn companies in regards to their low starting cost. In addition, they are relatively easy to run, as all you’ll need to do after the initial setup is live maintenance and updates.
Finally, no other business model on our list will give you as much ad revenue. Porn sites’ earning potential is truly massive, as long as they’re generating loads of traffic.
Disadvantages
The free tube site’s drawbacks are as obvious as the plastic in Aletta Ocean; to get anywhere, you’ll need users who’ll be willing to upload videos for free. While you could take on that role yourself (especially in your website’s earlier days), there’s no denying that you’ll be heavily dependent on visitors for traffic and building up a backlog of content.
True enough, no business can function without its clients. However, having to rely on them for what’s effectively your supply can be too much to handle.
Also, while these websites are relatively easy to monetize, the resulting cash flow tends to be as consistent as erections in your sixties. Sure, ad revenue is nice (and may bloat to tremendous heights as your website grows), but it’s not exactly impressive in your site’s early days.
In addition, getting users to pay for ad-free access won’t be easy without making those ads annoying enough to drive them away. Furthermore, like YouTubers were forced to learn from their platform’s Adpocalypse, you never know when an ad network’s terms of service can drastically change and lower your revenue out of nowhere.
Finally, you’ll need to enforce your own rules and terms of service. You can do that in one of two ways:
- Getting an employee who will act as your resident cockblocker and review each uploaded video before it goes live.
- Relying on user reports to point out content that breaks your ToS and removing that content yourself.
To summarize, here are the pros and cons of running an adult tube website:
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Paid Content Provider
There’s a lot of porn studios out there, and a good chunk of them don’t bother with content distribution to end users. These studios instead license content out to other websites, and if you decide to be a paid content provider, you’ll be running one of those websites.
Interestingly, paid content providers aren’t always open about where their stuff comes from. Most claim that they themselves produce their featured videos, or that users have uploaded them.
The practice has significantly blurred the line between this option and the free tube site.
That being said, paid content providers that have reached mainstream success while being honest about their business practices do exist. Notable examples include AdultTime and PureTaboo.
So, whether you keep your content source(s) under wraps or proudly announce it, will be up to you.
Monetization
With this kind of porn company, your best way of earning party dollars will be to simply sell access to your licensed content.
While you can grant this access on a video-by-video basis, you’ll probably find subscriptions much more lucrative. That option will typically net you between $20 and $40 a month, per subscribed user.
The business model also offers another solid monetization option: ads. To elaborate, a lot of sites employ a middle-ground approach, offering both a free version with ads, and an ad-free membership at a cost.
If you decide to do the same, you can expect to charge around $10 per ad-free membership.
Expenses
To secure content with this business model, you’ll need to license it. You can easily do so from a site like AFSC.
While these licenses aren’t too expensive, you shouldn’t go all out from the get-go. Basic packages like 800 HD Scenes (costing $300 at the moment) will be more than enough when you’re just unzipping your pants.
Don’t go for AFSC just because we’ve mentioned it here, though. Other sites might offer more competitive pricing, or content that better fits your niche.
So, do your research and finger your sources before settling on an option. It’s the only way to reach a jaw-dropping climax.
You’ll also need to start a website. As we’ve pointed out for free tube sites, that’ll usually set you back around $6000 upfront (or, again, even less if you decide to use a WordPress theme), plus around $1,000 for yearly maintenance.
Hosting will be much cheaper here, though, as you’ll only be storing a few hundred or — at most — a few thousand flicks. Compared to the millions of user-uploaded videos that free tube sites have to accommodate, this’ll be a much easier load to swallow.
Advantages
Paid content providers’ main advantage is how easy it is to get started.
There’s no need for dirty talk or foreplay. Establish a company, get its website up, license content from a studio, upload it to your website, and you’re good to go.
After that, upkeep will simply come down to buying more licenses once you get the ball rolling.
Disadvantages
Sadly, this approach may leave you with limited (or barely any) content to choose from, based on how obscure your chosen niche is. To pick a good one ― and avoid such an outcome ― check our guide on porn niches.
If the type of content you want to sell doesn’t have lots of videos on licensing sites, you’ll have to muddle your catalog with less relevant videos, or expand into another niche.
To summarize, here are the pros and cons of paid content providers:
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Porn Production
If you were wondering how to start a porn company with a big dick approach, our answer would be: become a porn producer. What’s not to like about directing and filming your own porn?
Today, a truckload of companies are producing pornography, but some of the biggest players you’ve most likely heard of are Brazzers, BangBros, and Nubiles.
Monetization
Companies of this caliber have two options: they can either license out their content to other sites, or run a subscription-based site of their own. They are production companies and distributors, all in one.
Both of these alternatives stand to make a lot of money, but the high cost of video creation is a bitch of a gatekeeper.
Single-video licenses usually come out at about $20 per video, with package deals offering discounts. As for running your own subscription site, you can easily charge around $25 per month — perhaps even more if you’re offering content in a sparsely populated niche.
Expenses
Pimpin’ ain’t easy, so producers need to cover a wider range of expenses than other company types. Accordingly, they also tend to make ridiculous amounts of money.
Models
Unless you want to star in your own videos (nothing wrong with that), you’ll need to hire models or porn stars.
Luckily, sites like SexyJobs, PornRecruit, or ThePornAgency will let you put up ads for your adult business that performers of both (or all) genders can respond to. These typically cost between $40 and $250 a month, depending on their type.
Alternatively, cheaper plans will give you tokens that you can use to directly send messages to models looking for work.
Now, girls usually charge a base price of $700 to $800 for your good old fashioned vaginal, with the price going up the kinkier the scene gets. The guys — expectedly eager to bang — typically go cheaper, with basic scenes coming in at $300 to $500 for straight porn.
Interestingly, filming and selling amateur porn is an emerging trend among modern couples. If you find such a pair and hire them, you can often expect a better deal than if you’d just hired two independent performers.
All the actors in your films will need to be tested for STDs, which you’ll also need to cover. Each month, you can expect to pay anywhere between $100 and $700 per performer for these tests, depending on whether or not the model has health insurance, and the state you’re in.
Sets and Equipment
Next, you’ll need to prepare some sets and equipment. When you’re just starting out, you can probably get by with filming in a hotel (if you find one that will allow it) or an empty room at your place, but later down the line, you’ll want to look into renting a set or studio.
You’ll also need studio lights or, at the very least, a few ring lights. Decent studio lights start at around $100, and you can get large ring lights for around $70.
As far as cameras go, a recent high-end phone (iPhone 12 or newer) might be a decent option for a real amateur vibe, but you’ll want to get a quality camera as soon as possible. To pick the right one for you, head on over to Camera Decision, and use their tools to find a camera that scores well for video recording.
And if you’d like an even more in-depth look at exceptional cameras for porn shoots, check our detailed guide.
Speaking of cameras, you’ll need someone to operate one, even if it’s attached to a phone. While you can initially fill those shoes yourself, you’ll absolutely want a pro as your production company grows in size and hardness.
One of those will probably cost you around $500 to $700 per shoot, but local deals or freelancers might bring that figure down. Just keep in mind that you’ll probably need several for high-end productions.
Other Costs
After that, you’ll need to write a script, or outsource that job. While your storytelling skills won’t have to gain the approval of Martin Scorsese, you’ll still want to give your stars a good idea of what they should be doing, especially if they’re amateurs.
Professional porn scriptwriters charge around $250 to $400 per script. Like with cameramen, you might be able to get cheaper offers from freelancers.
Depending on your niche and the video in question, other costs can vary greatly. In general, however, between makeup, sound, editing, and everything else, you can expect to shell out an additional $1,000 per video.
Your Website
Finally, you’ll want to set up your website. If you don’t plan on directly selling content to end users on it, you can go with a pretty basic layout, significantly lowering your overall costs.
That basic design will rarely take more than a grand off your hands. Hosting can be pretty cheap, too, since you’ll only be hosting the videos you produce.
Or, if you’d like to skip that grind, you could just get a premade theme like PornX. It’ll give your site everything you’ll ever need, and more.
The Summary
So, how much will porn production cost? While coming up with an exact number would be as hard as David Strongwood, figuring out some reference points will be much more manageable.
To do that, let’s group your potential expenses into one-time, monthly, and per movie costs.
One-time costs will include setting up and building your website, lighting, and camera costs (if and when you get one).
A website theme can be yours for around $100, a basic custom design is usually no more than $1,000, while a custom website tends to go for $6,000. Lighting-wise, you won’t need more than $170 to begin with, but $6,000 is the usual ceiling.
When it comes to a camera, what you put in is what you get. In practice, though, you can typically expect to throw in between $600 and $2,500 for a reasonable starter.
Thus, you’ll need around $270-$14,670 to cover one-time costs.
Your monthly costs will mostly consist of website upkeep and hosting expenses.
Lastly, we have per video costs. As a rule of thumb, for your basic one-on-one hetero sex scene, you can expect to spend:
- $40-$250 on finding models, if you don’t have any to start with
- $1,000-$1,300 on the performers’ wages
- $100-$700 on testing them for STDs
- $500-$700 on the camera operator
- $250-$400 on the script
- Approximately $1,000 in miscellaneous costs
- $600 for a hotel room, or $3,000 for a studio
These total out to between $3,490 and $7,350 per flick.
Advantages (and Disadvantages!)
Running a production company is like having a huge dick — its biggest pro is also its biggest con. Sure, your street cred might reach all the way to Kuala Lumpur, but good luck curing that persistent headache that seems to be plaguing your girlfriend.
But seriously, while the high expenses and necessary involvement aren’t too enticing, you’ll enjoy complete freedom when choosing your niche and getting content. Even better, you can make more money with a porn production company than with any other adult business type.
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Adult Marketplace
With the adult marketplace business model, you’ll be offering a space for users to buy or sell various adult-oriented products. You won’t be doing any selling yourself — you’ll just be a matchmaker for kinksters — and charging for that service.
While there’s a lot of variety on these platforms, they tend to specialize in either used products (Kinkie), or pictures and videos (FeetFinder).
Monetization
Adult marketplaces typically earn in one of two ways:
- By taking a small cut from each sale made on the platform
- By charging sellers a monthly subscription fee
While both options will make you money, each has its upside.
Namely, taking a percentage will earn you more if your platform is thriving. The more sales you help arrange, the more dollars will come pouring into your pockets.
In contrast, a monthly fee will give you a more stable income, in exchange for a lower earning ceiling.
Numbers-wise, platform cuts usually vary between 5 and 20 percent, and subscriptions tend to go for $5 to $15. No matter the approach you go for, though, we recommend sticking to the lower end of those ranges when you’re just starting out, and charging more down the line — as your user base grows.
Expenses
When you’re running an adult marketplace, most of your costs will come down to coding the actual website. This will often pile up to a hefty number, starting at around $25,000, then rising up like Manuel Ferrara at the sight of a vajayjay.
On the upside, you’ll be able to get away with paying much less for hosting, as you’ll be unlikely to store any large videos.
If you decide to take a trip down this pricey (yet profitable) lane, Vicetemple’s web development services will have you covered.
Advantages
The main allure of adult marketplaces lies in how little work you’ll need to do when managing one. And while your choice of monetization method will affect your ups and downs, even that will mostly be a matter of fine tuning.
At the end of the day, if you play your cards right and manage to get a healthy number (and ratio) of buyers and sellers, your site will make money without much (if any) work from you. It’ll be like having a sugar daddy — or mommy.
Disadvantages
The biggest boner killer with this business model is how hard it is to start. You might get caught in a loop, as no one can buy on your site if nobody is selling, and likewise, users won’t sign up as sellers if no one is buying.
To avoid such a case of performance anxiety, we recommend reaching out to models who have already set up shop on similar sites, and offering them incentive to sell on yours.
Alternatively (or in addition), you can always give yourself a quick jolt of users by paying for ads on large websites or ad networks.
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Porn Star Company
If you’re an adult performer interested in getting returns for business expenses, tax exemptions or returns, or absolving yourself of liability for your business debts, you’ll probably want to start a company.
The steps further below will cover the full process (and expenses) of doing so.
Not all of them are mandatory. In fact, you could probably save some time and money by skipping a few — such as hiring an accountant or researching hiring laws.
Still, we recommend reading through all of them, to familiarize yourself with the intricacies of starting your own company, and avoid many potential headaches down the line.
Expenses
As a porn star, you’ll only need to cover the expenses associated with starting a company listed below — unless you also want to start a website. If that’s the case, the standard website costs will apply to you, as well: $6,000 upfront, $1,000 a year.
However, you’ll be able to save quite a bit by going with a simpler site and a lightweight hosting plan, since you’ll be unlikely to store large videos or lots of pictures. Another — possibly even better — option would be to go with an adult model theme, such as ModelX.
As another plus, your promotional options will be relatively cheap and varied. Aside from the ability to promote yourself on websites like OnlyFans, there’s a plethora of ways to push your goods out for everyone to see.
Starting a Porn Company
Now that you’ve picked your business model, you’ll need to get your company up and running.
This section will cover the three main steps for doing so:
- Learning the legal requirements for starting a porn company
- Registering your porn business
- Handling upkeep for your company
Make the Necessary Legal Preparations
Registering your company without doing the necessary research is like going bareback without knowing your partner’s STD history.
So, before taking that plunge, you’ll want to research and familiarize yourself with the legal requirements of running a porn business — including any relevant laws and permits you’ll need to acquire. While this will largely depend on the state your business will be situated in, the requirements listed below are universal across the US.
And if you need state-specific legal advice, we recommend researching online or consulting a porn-friendly attorney (such as AdultBizLaw) and asking how to start a porn company in your area.
2257 Regulations
Brought into law to stop kiddy diddlers back in 1988, the 2257 regulations require all producers of sexually explicit material to keep detailed records on everyone working on their videos. That includes models, the crew, screenwriters, etc.
The regulations demand that all those involved in creating such material fill out a special form. The form requires the individual’s full legal name, as well as any nicknames or pseudonyms used in the content.
In addition, the producer must list all the forms of the model’s identification they were presented with. At least one of those must be a government ID.
The performer(s), photographer(s), and producer(s) must then give sworn statements by signing the appropriate section(s). Failing to comply with this law, or providing fake information, will be punished with jail time or hefty fines.
Business Permits
Acquiring a permit is the business equivalent of getting consent, and not doing so tends to result in fines or jail time. So, unless you idolize Ron Jeremy a bit too much, you’ll get that issue sorted.
Now, while the specific necessary permits vary by state (in particular, LA requires a permit specifically for the filming of adult content), getting a general business permit from the state or other local jurisdiction — such as a city or county — is necessary for all companies.
One of these will cost you between $25 and $1,000, depending on your state and local jurisdiction. For more information, we suggest asking a porn-friendly attorney.
Registering Your Porn Business
Having learned the legal requirements of running a porn business, you’ll be ready to register your company. Most of the time, you’ll want to register as an LLC — the Swiss army dildo of companies.
Granted, you could make a corporation if you really need additional funds, but that approach is complex and comes with substantial starting costs.
Conversely, you could also register as a sole proprietorship. However, that will require additional steps — such as acquiring a DBA (Doing Business As) — and won’t protect you from liability.
In essence, as a sole proprietorship, your company will serve no practical purpose besides giving you the opportunity for tax write-offs and letting you legally have employees.
All debts that the company takes out or falls into will be treated as your personal debts. Also, you will still be liable for any outstanding debts, even if you close the sole proprietorship.
On top of all that, while DBAs are useful, they don’t fully obscure your name from prying eyes. Again, LLCs are the best option for most, since they allow for the most freedom and don’t leave you personally liable for debts.
All of the above also applies if you’re forming a company as a porn star. Registering as an LLC will do a much better job of maintaining your privacy than a sole proprietorship would. A popular way to go about this is to simply give the company your porn star name (e.g, Roxy Love LLC).
Now, let’s talk numbers.
Forming an LLC will cost you between $40 and $500, depending on your state. If you don’t feel confident handling the process yourself, consider hiring a company like ZenBusiness to help you out.
For a paltry sum of $50, they’ll help you get your company up — like viagra for business!
Pick a Location
No matter the type of porn company you go for, you’ll need an office — with or without a casting couch. The term is formal, though, as you can save money by having your home serve as one.
For most people, forming an LLC in your own state is the best option, since offices must be located in the same state the LLC is registered in. Otherwise, visiting these offices might be difficult and time-consuming.
On top of that, you can’t be your own registered agent if you don’t live in the state where you registered the LLC. There will be more on registered agents later.
As a porn business, you’re unlikely to have a physical presence in multiple states, especially in the beginning. So, you probably won’t need to form a foreign LLC.
If you do end up needing a foreign company down the line, all the tips listed in this article will still be relevant. Just apply them to the state(s) where your other physical location(s) are.
Name Your Company
For the next step, you’ll need to pick a name.
It will have to include “LLC” and you should make sure that no other business is running under that name in your state. A cursory Google search should be enough to lay those doubts to rest.
While trademarks are important, you won’t need to get one immediately. One of those will set you back $225 to $600, so we suggest putting that process off for when your company starts generating decent money and traction.
Until then, you’ll be unlikely to get copycats or people representing themselves as your company. That being said, you should absolutely future-proof your company name by checking if it’s already trademarked.
Various tools will let you do that, but we recommend Marcaria’s tool, as it is very straightforward.
Given that physical pornography is a dying industry, you’ll probably be operating via a porn site. Therefore, you’ll want to avoid potential problems with your domain by running your chosen name through a domain name checker.
Your domain name will not need to include “LLC” and can be completely different from your company’s name. Even so, we recommend keeping them the same — or similar enough to keep your brand consistent.
Finally, if what you want isn’t available in .com, try out domain extensions such as .net and .adult, or adult domain extensions like .sex, .xxx, .porn, and so on. One of them is bound to get you all hot and bothered.
Get a Registered Agent
A registered agent is a person who receives and sends out legal papers on behalf of your company.
They’re also responsible for most of the company’s legal upkeep. That means that they keep up with potential changes in the law, and help you stay on top of them.
Anyone who resides in the state where the LLC is registered, is at least 18 years old, and is available in person during standard business hours can become a registered agent. As a result, you can take on that role, as can a friend or family member.
If you’d prefer not to worry about this aspect of your business, many registered agent services will hook you up with a professional. This peace of mind can be yours for around $100.
File LLC Articles of Organization
Next up, you’ll need to file your formation documents with your state’s business division. You can do that yourself — online or via snail mail — or pay someone else to do it for you.
Namely, many companies will charge you a small fee to fill these docs out for you and send them in your name, leaving you with more spare time.
As you’ve probably guessed, the exact costs and actual forms vary by state. Some states might call them Certificates of Formation or Certificates of Organization, but you can generally expect them to lighten your wallet by around $100.
Member-Managed or Manager-Managed Structure
If you’re taking the recommended LLC route, you’ll need to make a major decision while filling out the aforementioned forms. Specifically, you should decide whether your company will be member-managed or manager-managed.
We recommend a member-managed structure, as it is much better suited for small businesses. It means that company members (in this case, “owners”) are involved in the business’s day-to-day operations, and power is split evenly between them.
This structure gives your company’s core members more power, so you won’t need to hire employees for day-to-day management — significantly lowering costs. Even if you’re your organization’s sole owner, this will be your best option, unless you really don’t want to manage your company.
In contrast, a manager-managed LLC is run by a professional, or, preferably, a team of them.
Now, this is one polyamorous relationship that you probably won’t want to jump into right from the get-go. Managers are pricier than porn stars (and aren’t nearly as hot), so don’t spend money on them this early in your company’s life cycle.
No matter how appealing they may seem while you’re still unsure about how to start a porn company, we suggest switching to this management type later. You’ll be able to make great use of their services once your company grows substantially, and running it becomes tedious or unmanageable.
Create an LLC Operating Agreement
An operating agreement isn’t necessary in most states, but we still recommend putting that ring on and creating one. Think of it as a prenup between your company and the state it’s operating in.
Fittingly, the document will outline how the company behaves in certain situations, the sharing of ownership, management, profits, and losses among company members, as well as cases in which the company will be dissolved — if any. For more information and a free tool for creating your own, visit this article about LLC Operating Agreements.
That being said, we recommend having a lawyer draft one up for you, to avoid later headaches. That bit of luxury will usually cost in the neighborhood of $500.
Get an EIN
Employer Identification Numbers (EIN, FEIN, or FTIN) are like social security numbers for businesses. One of these will identify your company more precisely than its name.
You’ll need an EIN to hire employees or open a business bank account, so it’s as essential as condoms and lube.
Luckily, getting one is just as easy — and even more affordable, given that it’s free. Simply apply for an EIN via the IRS website, and they’ll send you yours via fax or mail quicker than Abella Danger can squirt from anal.
Manage Your Operations
Like any relationship, your company will require upkeep. This section will include everything that you will need to do to keep things running smoothly.
Start a Company Bank Account
When you start an LLC, your personal assets are protected as long as your company assets are separate from them. To ensure that, you’ll need to set up a company bank account.
Most major banks will let you do so without issue. All you’ll require is the documentation you’ll already have by that point. For starters, you’ll need some personal identification in the form of a Government ID. On top of that, you’ll require your EIN, business registration, and compliance documentation.
As we’ve mentioned above, your state may request that you get additional permits. In that case, you are to bring those, as well.
Similarly, your bank may ask for additional documentation. Therefore, we suggest checking online or contacting their customer service, to learn exactly what you’ll need.
This process will cost you less than an unqualified blowjob, but banks will typically require you to keep a certain amount of money on your account at all times; usually around $1500.
Register For State Taxes
While not all US states have state taxes, those that do will expect you to pay up.
So, if you’re not in Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, or Wyoming, you’ll want to register for sales and use tax. If you have employees, you’ll also need to register for unemployment insurance and employee withholding taxes, and so on.
All of that is easy to get lost in while you’re still learning how to start a porn company. Luckily, you can easily consult competent sources.
For more information about various states’ tax requirements — such as an annual tax report or particular taxes for adult products and services — check online and consult a porn-friendly attorney.
Understand Your Federal Tax Options
In a sense, doing business is similar to BDSM, as pleasure is often followed by pain — and vice versa. Fittingly, any profit that your LLC makes will be taken into account when calculating the owners’ income tax.
Jokes aside, members of your LLC (or just you, if you’re running a one-man band) will need to pay self-employment taxes and income tax on their share of the business’s income, after all deductibles are applied.
That policy isn’t as tight as a Catholic girl’s backdoor, though. In fact, registering your LLC as an S corp is one way of giving yourself some wiggle room.
If you do so, your LLC members will be taxed like employees, letting you avoid double taxation. This benefit does come with a downside, though, as an S corp can transfer its losses to you, not unlike a sole proprietorship.
Still, if you see yourself doing reliable business, you may find the option worthwhile, as it can save you some fat stacks.
To learn more about S corps, their benefits and drawbacks, and the format’s practical effects on your business, contact a porn-friendly attorney, or check out this article.
Set up Business Accounting
Hiring an accountant is like screening for STDs — the sooner you do it, the better. It’s not all itching and discomfort, though, as a good accountant will help you make the most of any tax deductions or returns that your company might be eligible for.
In addition, they’ll take the complicated work of tax filing and budgeting off your hands, leaving you with more time to play with yourself — or someone else.
Most importantly, an accountant will keep your company’s finances neat and within regulations. And given how much trouble messy finances can cause, there’s no real reason not to get one.
You’ll avoid unnecessary fines, and have peace of mind: win-win.
Because accountants go both ways — locally and online — you’ll need to decide which option would be better for your business. As you might expect, both have their upsides and downsides.
Online accountants are usually cheaper and easier to find, as with them you won’t be limited to local job offerings.
On the flip side, they likely won’t be available for real-life appointments, if you happen to need them. Even if they are, though, you’ll probably have to take a long and expensive trip to get to them.
On the other hand, a local accountant will generally be able to meet you in-person during standard work hours.
Unfortunately, when hiring one of these, you’ll be limited to offers near you. As a consequence, you may end up paying more, or picking someone with less experience than you expected.
So, whom do you pick?
In general, you’ll want to go with an experienced (if somewhat pricier) local accountant. The convenience of being able to discuss finances in person will usually offset their increased cost.
Speaking of costs, you can expect to pay around $300 a month for a basic accounting service. However, local offers and personal accountants will cost you more, based on their experience and how much of their time you’ll require.
For more accurate numbers, you’ll need to contact individual accountants or companies, and ask. Alternatively, you can reach out to Vicetemple, and leave your accounting in our capable hands.
Get Business Insurance
Most states will require you to get worker compensation insurance, and we strongly recommend also getting general liability insurance. Both will make it easier to deal with potential setbacks.
Namely, worker compensation insurance provides ill or injured employees with pay during their downtime. Even in states that don’t necessarily require worker compensation insurance, you’ll be much more likely to get employees if you offer it.
Meanwhile, general liability insurance will protect your company assets in case of legal trouble. Sure, it comes at a cost, but it’s better to invest in a box of quality condoms than pay for a costly hospital visit to treat that clap.
Applying for these is simple, and usually only requires documents that you will already have by this point. These include permits, registration documentation, and your EIN.
General liability insurance will cost you between $350 and $800 a year, depending on what exactly you need, and the state you’re located in. On the other hand, worker compensation insurance will come out to about $500, annually.
Follow Hiring Laws
No porn company will go far — or anywhere — without employees. From models to camera operators, additional producers, and website managers, everyone will need to do their part to provide that magical bukkake scene.
So, sooner or later, you’ll form a team you enjoy working with. When that happens, you’ll want to follow your state’s hiring laws, and list your regular collaborators as employees.
While those laws do vary by state, a number of them are constant throughout the US. To make sure that you comply with them, do the following:
- Verify that all your employees are eligible to work in the US, and have the proper documentation to do so
- Provide the aforementioned workers’ compensation insurance for all employees
- Report all employees as new hires to the state
- Pay all employees at least minimum wage
- Withhold employee taxes
- Print compliance posters and place them in visible office spots
As for state-specific laws, we recommend consulting a porn-friendly attorney, or doing a bit of online research.
Set Up a Website
With your company registered and everything else done, the hardest part is over!
Next, you’ll need to set up your center of operations — your website. This is where users will upload their videos and pics if you choose to go with the free tube site or adult marketplace model, or where you’ll sell your content if you pick one of the other business models.
To help you with what comes next, we’ve made a detailed guide on setting up your own porn site. Aside from actual site setup, the article also lays out various tips for SEO, promoting your site and company, and picking an adult-friendly billing solution.
And once you’re done with the website, your days of wondering how to start a porn company will officially be over. You’ll be a proud member of the adult industry elite, ready to reap its forbidden riches in the plentiful years to come!
