Do equine massage therapists need an LLC in 2025?

Disclaimer: I’m just a horse girl with a passion for helping equine bodyworkers build profitable businesses. I’m not a lawyer or an accountant (sorry, mom + dad). Always talk with your trusted professionals before making your own business decisions.

Sole Proprietorship vs LLC vs. S-Corp for horse bodyworkers - what’s right for you!?

It’s going to depend on a few factors, like: how you prefer to structure your business (and finances), what layer of protection you want against personal lawsuits, and how big your business is.

Most bodyworkers will fit into 3 categories:

• Sole Proprietorship

• Limited Liability Company (LLC)

• S-Corp

To determine which one is the best for you, let’s look at the specifics:

Sole Proprietorship

If you started your business and thought “I’ll look into that LLC thing later….” and then never did 😅 you’re a sole proprietor! A sole proprietor basically means that you are running a business as yourself. It doesn’t require any setup cost to be a sole proprietor, although you should set up a DBA (‘doing business as’) if you are calling yourself anything other than your name.

• Example: If I was just “Liz Butler, Equine Massage Therapist” I could get away with being a sole proprietor and no DBA. However, If I was “Liz Butler, Barrio Performance Therapy” then I would need a DBA for ‘Barrio Performance Therapy’ so that my name and what I go by as my business are associated with one another.

The pros of being a sole proprietor are that it’s easy (no cost and no paperwork other than the DBA, if applicable). It also puts you fully in control and allows you to take all profits directly to yourself. Taxes can be easier because there is no separate bookkeeping or tax return - it’s all just under your name.

The cons of being a sole proprietor are that it creates a lot of personal liability. If something happens and you end up in a lawsuit, they would be coming after you personally, not your business. You also don’t have the ability to build business assets or business credit, nor can you eventually sell your business as a sole proprietor.

TL;DR: A sole proprietor is a good fit if you are just starting and/or only seeing a few horses each month and comfortable with no legal shield of your personal assets.

LLC (Limited Liability Company)

An LLC is the category in which most bodyworkers will fall into. If you plan to build your business beyond just a few horses a month, an LLC is a must.

An LLC creates a separation from you personally vs. the business you run. They become separate entities and give you more protection against lawsuits and debts.

• Example: If Barrio Performance Therapy was involved in a lawsuit, they would be able to go after all of the business assets, but not Liz Butler’s personal home, car, etc. *There is nuance here, and I am not a lawyer - but the gestalt is that an LLC gives you personally more legal protection, not full legal protection.

The pros of creating your business under an LLC are that it’s very professional (many businesses we interact with are LLCs), and you are still taxed like a sole proprietor (you file taxes as yourself, with the LLC being a component of your filing). It also gives you the ability to open a business bank account so you can keep all of your business finances separate.

The cons of being an LLC are that it does require you to register with the state (usually through your Secretary of State) and acquire an Employer Identification Number (EIN = like the Social Security #s of businesses) to file taxes under. Most states will also require a small filing fee and some will also require annual reporting.

TL;DR: Most bodyworkers will be LLCs. It requires a little bit of paperwork and a small fee to get started, but offers much more protection and professionalism.

S-Corp:

An S-Corp can be pictured like an add-on to an LLC. Most bodyworkers will not need to register as an S-Corp at the start of their business.

An S-Corp provides more flexibility with adding co-owners or employees but less flexibility with how much you pay yourself and has more stringent payment guidelines such as requiring you to run payroll and file quarterly payroll taxes.

However, once you are making more than about $60,000 annually - there are significant tax benefits to being an S-Corp.

• Example: If you are making $100k a year, an S-Corp allows you to pay yourself a “reasonable salary” (ex: $60,000) and pay yourself the rest in dividends which are exempt from the high self-employment tax rate. Depending on how much you are making, this can save you several thousands in taxes annually.

TL;DR: An S-Corp is probably overkill until you reach a point where you are making close to or more than six-figures. At that stage, it’s worth investigating to see if the tax benefits outweigh the additional costs/work.

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So, where does that leave you?

For most bodyworkers, it’s going to be the LLC category. A sweet spot in the middle that gives you protection from just being little-old-you against the world but not so big that you have to mange payroll reporting every quarter.

No matter which path you choose, it’s important to research if you need a business license in addition to your business formation. This can get tricky, as it varies by state, county and sometimes even city. The best place to start is your state's Secretary of State and/or county assessor site to research the requirements. Don’t forget to do the research in any and every area you’ll be working in (not just where you live!).

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Feeling stressed about getting your business off the ground? I’m here to help! Barrio’s 1:1 Business Coaching gives bodyworkers the leg-up to start running their business like an owner, not a passive onlooker. Take control of your business today!