Pampered, pampered, almost manicured like stars, these pets are followed by hundreds of thousands of subscribers on the networks. And for their owners, they pay big dividends, like real small businesses, not to mention all the tax advantages.
For example, the husky Swaggy Wolfdog, a popular influencer dog, has 7.5 million followers on TikTok. The Swaggy team treats its business like a business: The dog has its own incorporation, and various expenses associated with the animal are deducted — including dog food, clothing, and travel — as business expenses. Other costs may be added to the deductions, such as those for a dedicated home office space, generally based on the percentage of time spent on professional activities.
Tax deductible
To carry out doggie business, owners can rely on agencies like The Dog Agencywho help manage pet influencers and advise on tax matters.
To get the full benefits of an incorporated company, most furry influencer owners need to make upwards of $100,000 a year. The potential need for legal protection should be considered, although the risk of a pet being sued remains minimal.
In addition to incorporation, administering an animal through a registered non-profit organization can provide tax advantages, by allowing any unreimbursed expenses related to animal care to be deducted.
Animal or human influencer
That said, the influencer industry isn’t that simple with pets. Animal influencers generally have lower rates for sponsored events than human influencers. Although the animals do not directly influence sales, their pretty hairy face compensates for this lack.
Animal influencers are perceived more positively by the public because they are less likely to make mistakes than human celebrities. However, the shorter lifespan of the animals and the pain that this can cause is a disadvantage for the companies.
By-products
Despite the bereavement, the financial success of their owners varies. In Noodle’s case, its owner, comedian Jonathan Graziano, found success with a children’s book about pets and plans to continue his pet fostering efforts.