Once considered a niche hobby relegated to basements and game shops, Dungeons & Dragons is now big business. And with the rise of online platforms, livestreams, and virtual tabletop tools, more Dungeon Masters (DMs) are being paid for their time, creativity, and storytelling skills. As the “DM-for-hire” trend grows, a new question emerges: Should professional DMs form an LLC?
If you’re charging for sessions, offering subscription campaigns, or managing multiple players in paid games, you’re not just running encounters—you’re running a business. And that business could benefit greatly from the structure and protection of a Limited Liability Company (LLC).
Contents
- Why a DM Business Is More Than Just a Side Hustle
- Benefits of Forming an LLC for DM Services
- Real Stories of DMs Who Formed LLCs
- What Kind of DM Business Can Benefit from an LLC?
- LLC Formation Basics for Dungeon Masters
- Should You Form the LLC in a Different State?
- Risks to Consider (and How an LLC Helps)
- Extras to Consider for DM Businesses
- Rolling the Dice Without an LLC Is a Risk
Why a DM Business Is More Than Just a Side Hustle
The professional DM market has exploded in recent years, with platforms like StartPlaying, Roll20, and Patreon allowing DMs to charge for their campaigns. Some offer one-shot sessions, others run long-form campaigns with character art, custom maps, and full narrative arcs. And many DMs now earn anywhere from a few hundred to several thousand dollars per month.
But with income, responsibility, and visibility comes risk. Forming an LLC is one way to take that growing gig and give it the legal muscle it needs.
Benefits of Forming an LLC for DM Services
1. Legal Protection from Lawsuits and Claims
It sounds dramatic, but even fictional worlds can lead to real-world consequences. A player might claim emotional distress from a session, accuse a DM of discriminatory behavior, or dispute a payment. While rare, these situations happen—and when they do, an LLC acts as a legal shield between your personal life and your business.
2. Professional Credibility with Players and Clients
Want to attract corporate clients for team-building sessions? Running large campaigns at conventions or partnering with other creators? Using an LLC elevates your brand. It signals that you’re serious, organized, and trustworthy—far beyond the average hobbyist.
3. Financial Separation
An LLC allows you to open a business bank account, issue invoices under your company name, and track revenue and expenses cleanly. This makes tax filing easier and gives you a clear picture of your income.
- Game payments stay separate from your personal checking account
- Purchases of maps, subscriptions, dice, software, and props are legitimate business expenses
4. Simpler Contracting and Agreements
As a professional DM, you may sign NDAs, session contracts, or online terms of service. Doing this through an LLC lets you reduce personal liability and standardize expectations with players—especially around payment terms, cancellations, or platform use.
Real Stories of DMs Who Formed LLCs
Liam with “Owlbear Adventures”
After running consistent paid sessions online, Liam launched a small business under “Owlbear Adventures LLC.” This allowed him to set up a Stripe account, apply for a vendor spot at a local convention, and file taxes as a business rather than hobby income. His players appreciated the professionalism—and his accountant appreciated the separation.
Holly’s Ad Venture Games
Holly was commissioned by a game developer to run custom world-building sessions for their new fantasy RPG. She quickly formed an LLC to manage the contract, handle liability insurance, and appear polished when submitting invoices. She later used the same LLC to launch a YouTube channel with branded D&D tutorials.
Chris Builds a Brand, Not Just a Name
Chris formed an LLC when he began offering print-and-play content, digital modules, and custom maps on Kickstarter. What started as paid DM sessions turned into a product-based business—and the LLC was already in place to scale it legally.
What Kind of DM Business Can Benefit from an LLC?
- Online DMs running paid campaigns on StartPlaying or Roll20
- DMs creating and selling homebrew content on DriveThruRPG
- Game masters offering team-building workshops or educational RPGs
- Event-based DMs working with conventions or local game shops
- Podcasters or streamers with monetized campaigns or merchandise
Basically, if money is involved and your brand is growing, an LLC adds a layer of safety and legitimacy.
LLC Formation Basics for Dungeon Masters
- Pick a unique business name – You might go with your brand or alias plus “LLC.” Example: “Critical Path Games LLC”
- Check availability with your Secretary of State and domain registrar
- File Articles of Organization in your state (usually done online)
- Appoint a registered agent (can be you or a privacy-focused service)
- Get an EIN from the IRS (free) for banking and tax purposes
- Open a business bank account to keep income and expenses separate
- Create an Operating Agreement if you have partners or expect to scale
Should You Form the LLC in a Different State?
Most solo DMs should form their LLC in the state where they live and work. There’s rarely an advantage to choosing Delaware or Wyoming unless you want privacy or complex ownership structures. Keep it simple—especially if you’re a one-person show.
Risks to Consider (and How an LLC Helps)
Professional dungeon mastering may seem low-risk, but there are still legal and financial issues that can arise:
- A player gets injured at an in-person session
- You’re accused of unfair practices or discrimination in a paid game
- A guest cancels last-minute and demands a refund
- You’re sued for breach of contract or misuse of intellectual property
While these issues aren’t common, they’re real. An LLC won’t prevent lawsuits, but it creates a firewall between your personal and professional lives. Combine it with general liability insurance and clear game agreements, and you’ll be well protected.
Extras to Consider for DM Businesses
1. Contracts or Session Agreements
Create a simple document that covers payment terms, player conduct, game expectations, and cancellation policies. Use your LLC name and provide contact info tied to your business, not your personal email.
2. Branded Payment Systems
Platforms like Stripe, PayPal Business, and Square let you send invoices or take payment in your company’s name. This not only looks professional but helps with chargebacks and accounting.
3. Content Licensing and IP Rights
If you publish homebrew content or maps, your LLC can own the intellectual property—making it easier to license or protect legally. Consider registering copyrights for major works you want to monetize.
4. Business Insurance
General liability or professional liability insurance can be surprisingly affordable and may cover situations where a player is injured at a live session or disputes a paid service. It’s a smart add-on to your LLC structure.
Rolling the Dice Without an LLC Is a Risk
Dungeon mastering for money is no longer fringe—it’s a valid business model. Whether you’re running weekly campaigns for loyal players or building a brand across multiple platforms, forming an LLC is a solid step in leveling up.
It’s not about overcomplicating things. It’s about protecting your creativity, organizing your finances, and giving your players the confidence that they’re dealing with a professional storyteller—not just a hobbyist with a PayPal link.
So if you’ve been wondering whether to take the plunge, ask yourself this: Are you building a fantasy world—or building a real business? If the answer is “both,” then your next quest may start with a business filing instead of a character sheet.
