For marketing, creative, and dev agencies

You sell the work. Make sure you own it

An agency runs on a rotating team of employees and freelancers and a book of client contracts. That makes the entity, the contractor agreements, IP assignment, and how you classify your team the things that keep the business clean. We set it up so the work you deliver is genuinely yours to sell, and stays that way as you scale.

LLC liability protection IP assigned to the agency Team classified right
The setup behind marketing, creative, and dev agencies IP assigned to the agency Contractors classified right 4.9 from 8,200+ reviews 1099s and renewals tracked
IP assigned
Every contributor signs the work over to the agency
1099-NEC
Filed for each freelancer, from W-9s collected up front
Classification
Employees and contractors sorted correctly
Sales tax
Registered where your services are taxable
The risk hiding in your best project

You delivered the work. But do you own it?

Agencies sell work made by a rotating team of freelancers, and that is exactly where the risk lives. If a contractor never signed an IP-assignment agreement, they may still own what they made, which becomes a real problem the moment you assign it to a client. Meanwhile a freelancer you treat as a contractor can be reclassified as an employee, and back payroll taxes follow.

We form the entity, put client work under master service agreements, make sure every contributor assigns their IP to the agency, and get your team classified correctly, so the work you deliver is genuinely yours to sell.

Run on handshakes
  • Freelancers with no IP assignment
  • Work you cannot fully sign over to clients
  • Contractors who may be employees
  • 1099s scrambled together in January
  • No entity between you and a dispute
Clean on File.Business
  • Every contributor assigns IP to the agency
  • Work you can fully deliver and defend
  • Team classified as employee or contractor
  • W-9s up front, 1099s filed on time
  • An entity that separates the risk
What does your team actually require?

Set your team mix, see what it takes

Adjust your employees and freelancers and watch the agreements, filings, and payroll obligations change. This is what we set up and keep current for you.

3
4
What your team needs
7IP-assignment agreements, one per contributor, so the agency owns the work
41099-NEC filings each January, one per freelancer paid 600 or more
3Employees on payroll, with workers comp and employment agreements

You have employees, so payroll, workers comp, and correct classification all apply. We set them up and keep your freelancer agreements and 1099s in order. See agreements.

How your agency gets set up

From first client to a clean, ownable book of work

Five steps, in the right order. Select one to see the detail.

Step 1

Form the entity that shields you

An LLC separates your personal assets from the agency, which matters the moment a client disputes a project or an invoice. We form it in your state, with fees passed through at cost, so a claim tied to the work stays with the business.

A shield between you and a client dispute.
Entity: LLC FORMED
Personal assets separated
Ready to sign clients
Step 2

Get your EIN and business banking

The EIN is your federal tax ID, and a business account keeps client payments, contractor payouts, and payroll separate from your personal money. Both come before your first retainer lands.

A dedicated account for retainers and payouts.
EIN: ISSUED
Business banking opened
Ready to invoice
Step 3

Put client work under contract, with IP assigned

Client engagements belong under a master service agreement plus a statement of work, and every person who touches that work, staff or freelance, must assign their IP to the agency. This is what lets you fully deliver work to a client and defend it. We put the structure in place.

Every contributor signs the work over to the agency.
Client MSA: IN PLACE
IP assigned to agency
Work is yours to sell
Step 4

Classify your team and set up tax

Whether each person is an employee or a contractor has real tax consequences if it is wrong, and some states apply a strict test. We set classification correctly, collect W-9s, prepare for 1099-NEC filings, and register sales tax in the states that tax your services.

Team classified, W-9s in, sales tax registered. Sales tax.
Team: CLASSIFIED
W-9s collected
Sales tax registered
Step 5

Scale the team and keep it clean

As you add freelancers, hire across state lines, and grow profit, new obligations appear: payroll in new states, more 1099s, and eventually an S-corp election. We track the filings and flag the elections so growth never leaves a mess behind it.

1099s, multi-state payroll, and elections in the calendar.
Filings: TRACKED
S-corp when it pays
Clean as you grow
How this compares for an agency

Built for a team and a book of client work, not a generic business

Most setups skip the IP assignment, the classification, and the 1099s. Here is the difference.

CapabilityFile.BusinessDIY formsLocal bookkeeperGeneric filer
Entity and IP assignmentTemplatesNot availableFormation only
Team classified correctlyNot availableSometimesNot available
1099-NEC filings handledNot availableAdd-onNot available
Sales tax where services are taxableNot availableVariesPer filing
Multi-state hiring flaggedNot availableVariesNot available
Transparent, published pricingHourlyPer filing

The honest version. A good attorney is worth it for your master agreement and any real dispute, and an accountant for your books and S-corp payroll, and nothing here is legal advice. What File.Business does is form the entity, put IP assignment and contractor agreements in place, classify the team, handle 1099s, and register sales tax, so your specialists focus on the high-value work. Compare on the comparison hub.

BosAI for agencies

An operator who knows the agency playbook

Ask in plain English. BosAI knows IP assignment, contractor classification, and 1099s.

BosAIOwner workspace, Northwind Creative

A client wants full ownership of a campaign. Can I actually give it to them?

Only if you own it first. You can only assign work to a client that your agency actually holds, and that requires every contributor, staff and freelance, to have signed an IP-assignment agreement. I have those in place for your team, so the chain of ownership runs cleanly from contributor to agency to client.

One freelancer works with me full time now. Is that a problem?

It can be. The more control you have over how, when, and where someone works, the more they look like an employee, and some states apply a strict test. If a contractor is reclassified, back payroll taxes and penalties follow. I have flagged this one for review, and it is worth confirming the classification with your accountant.

Do I charge sales tax on our retainers?

It depends on your state and the service. Most states do not tax professional creative work, but some tax advertising, web design, or data services specifically. I have checked how your state treats what you sell and set up sales tax collection where it applies. See sales tax.
From an agency owner

The ownership chain held up

We grew fast on freelancers and never thought about who owned the work, until a client asked for a full IP transfer and their lawyer started asking questions. File.Business set up the entity, put IP assignment in every contractor agreement, and sorted out which of my people were really employees. The transfer went through clean. Now every project is ours to deliver.
Founder
Creative and digital agency
IP
assigned by every contributor
Team
classified correctly
1099s
filed on time, no scramble

Representative composite based on agency outcomes. Nothing here is legal or tax advice; consult your professionals for your situation.

For the questions agency owners actually ask

Straight answers on IP, team, and tax

Should my agency be an LLC or an S-corp?
Most agencies start as an LLC for its liability protection and simple setup. Once profit is steady and high enough, electing S-corp treatment can reduce self-employment tax on distributions, subject to paying yourself a reasonable salary. We form the LLC now and file the S-corp election when your numbers make it worth it. See S-corp election.
Are my freelancers contractors or employees?
It depends on how much control you have over their work, not just whether they invoice you. Misclassifying an employee as a contractor can lead to back payroll taxes and penalties, and some states apply a strict ABC test. We help you set the classification correctly and put the right agreements in place for each, and it is worth confirming with your accountant.
Who owns the work my contractors create for clients?
Not automatically your agency. Unless a written agreement assigns it, a freelancer can retain rights to what they create, which becomes a serious problem when you assign that work to a client. We make sure every contributor signs an IP-assignment agreement so the agency, and then the client, actually owns the work. See agreements.
Do I need to file 1099s for my freelancers?
Generally yes. For most contractors you pay 600 dollars or more in a year, you file a 1099-NEC each January and send them a copy. We collect W-9s up front and handle the filings so January is not a scramble. See the compliance calendar.
Do agencies charge sales tax on their services?
It depends on the state and the service. Most states do not tax professional creative services, but some tax specific things like advertising, web design, or data and information services, and the rules are changing. We check how your state treats what you sell and register you where collection is required. See sales tax registration.
What contracts does an agency need with clients?
At a minimum a master service agreement plus a statement of work per engagement, covering scope, payment, IP ownership, and liability. Getting IP and payment terms right protects you when a project changes or a client disputes an invoice. We get your entity and agreement structure in place; a good attorney is worth it for your master template.
What happens when I hire in another state?
A remote employee in a new state generally creates payroll and often income tax obligations there, and sometimes a registration to do business. Remote contractors are lighter but still need agreements. We flag what each new state requires so a distributed team does not create a surprise. See foreign qualification.
Should each client or brand be its own entity?
Usually not. Most agencies run everything through one entity and separate risk with contracts and insurance rather than a company per client. If you spin off a product or a joint venture, that can deserve its own entity, and we can set it up when the time comes. See the multi-entity dashboard.
Does this replace my accountant or attorney?
No, and this is not legal or tax advice. A good accountant is worth it for your books and S-corp payroll, and an attorney for your master agreement and any dispute. File.Business forms the entity, handles contractor and IP agreements, classification, 1099s, and sales tax, so your specialists focus on the high-value work. Talk to us.
Owned, contracted, and classified right

Build the agency on a clean foundation

Form the entity, put IP assignment and client agreements in place, classify your team, and let us handle 1099s and sales tax. Start now, or talk with our team about your agency.

SOC 2 Type II · Not a law firm · State fees passed through at cost