Why Cosplayers and Convention Vendors Should Consider an LLC

Whether you’re spending your weekends in hand-built armor, tabling at artist alleys with your latest prints, or crafting custom merch for fellow fans, you’ve probably asked yourself: Is this a hobby—or a business? And more importantly: Should I form an LLC?

If you’re making money at conventions, online shops, or through brand deals and commissions, the line between fan passion and business has already been crossed. Forming a Limited Liability Company (LLC) is a step that could help protect your work, your finances, and your future.

Cosplay and Con-Adjacent Hustles: A Growing Economy

From Etsy shops selling enamel pins and keychains to traveling cosplayers charging for appearances and photo ops, the fan-based creator economy is booming. But unlike traditional retail or services, much of this world operates informally. Cash payments, personal Venmo accounts, and under-the-table vendor fees are still common.

Here’s the problem: as your income grows, so does your risk. Without a formal structure like an LLC, one refund dispute or copyright issue could cost more than just your table fee—it could reach into your personal bank account.

What Is an LLC and Why Should Creators Care?

An LLC, or Limited Liability Company, is a legal structure that separates your personal assets from your business. It’s simple to set up, relatively low-cost, and especially well-suited to creators, vendors, and part-time entrepreneurs.

Benefits of an LLC for Cosplayers and Vendors

• Liability protection – If someone sues over a costume accident, product injury, or contract issue, your personal finances are shielded.
• Professionalism – Shows and conventions may take you more seriously when you register as a business, especially for long-term vendor opportunities.
• Financial separation – Keeps business income, travel costs, materials, and commissions cleanly separated from your personal funds.
• Access to tax deductions – You can deduct things like fabric, art supplies, travel, booth fees, software, printing, and more.
• Brand building – Operating as “StarForge Studios LLC” or “NeonSketch Co.” helps build trust with customers and opens doors to collabs and licensing.

Common Scenarios That Justify an LLC

1. You Sell Merchandise Online or at Cons

If you’re selling prints, crafts, apparel, or accessories—even in small quantities—you’re running a business. An LLC gives you a legal framework to collect payments, pay sales tax, and grow.

2. You Offer Commissioned Work

Taking payment for custom props, cosplay builds, emotes, or artwork? That’s taxable business income. An LLC helps you handle contracts, protect against disputes, and track expenses.

3. You Do Paid Appearances or Brand Work

If you’re doing cosplay guest spots, promotional photoshoots, or sponsored social media content, having an LLC signals that you’re a professional creator—not just a hobbyist with a PayPal link.

4. You Have a Growing Online Following

As you gain visibility on TikTok, Instagram, or YouTube, brand deals and legal attention both increase. An LLC helps manage that growth responsibly.

Steps to Form an LLC for Your Cosplay or Convention Business

1. Choose a business name – Use your brand name or cosplay alias (e.g., “MoonForge Designs LLC”)
2. Check for availability with your state and as a domain if needed
3. File Articles of Organization with your state and pay the filing fee (typically $50–$300)
4. Get an EIN from the IRS – You’ll need this to open a business bank account
5. Open a business bank account – Keep all vendor income and expenses organized
6. Apply for a sales tax permit – Required in many states for selling at conventions

Real-Life Examples from the Cosplay Community

Aria the Cosplayer and Guest Judge

Aria travels to regional cons as a paid guest. She receives appearance fees, sells prints, and collaborates with sponsors for costume materials. Her LLC allowed her to get liability insurance for events, deduct travel costs, and receive payments from brands under her business name.

“Pixel Ink” – Artist Alley Vendor

Lucas runs a convention booth selling digital prints, charms, and keychains. Forming an LLC allowed him to apply for an official tax ID, access wholesale prices from manufacturers, and separate business finances from his personal savings. He now books over 12 cons a year.

“PlushForge” – Etsy Shop + Convention Seller

Sam sells handmade plushies at conventions and through Etsy. After dealing with a shipping issue and a customer dispute, she realized an LLC could help her appear professional and protect her from lawsuits if something went wrong.

What an LLC Won’t Do

While an LLC is a strong move, it’s not a cure-all:

• It won’t protect you from copyright infringement claims if you sell fan art or unlicensed merchandise
• It won’t automatically handle taxes—you still need to report income and expenses
• It doesn’t replace insurance—you’ll still need coverage for events and physical products

Think of an LLC as the first layer of protection. Combine it with ethical selling practices, clean record-keeping, and proper insurance, and you’re on the right track.

Extra Considerations for Convention Creators

1. Local Sales Tax and Permits

Many conventions require you to have a temporary sales tax permit in the state where the con is held. Your LLC should register for these ahead of time when necessary.

2. Vendor Insurance

Some events require general liability insurance to vend. With an LLC, it’s easier to get vendor-specific policies through providers like ACT or Hiscox.

3. Contracts and Payment Terms

If you’re doing guest appearances, workshops, or collabs, operate through your LLC name and consider using simple contracts to protect your time and payments.

Protect Your Passion—and Treat It Like the Business It’s Becoming

Your art, your fandom, and your creativity deserve more than hustle-mode chaos. Whether you vend at one con a year or tour the circuit in full regalia, forming an LLC is one way to honor the value of what you do. It creates a boundary between your craft and your liability. It builds trust. And it allows your creativity to scale into something sustainable—without burning you out or tripping you up.

You’ve already built the armor, the merch, the brand. Now it might be time to build the business structure that holds it all together.