Creators at House hearing describe contract, payment‑term and tax challenges; call for education and clearer rules

Creators, talent managers and legal counsel told the House Small Business Committee that payment terms, contract clauses and tax compliance create recurring barriers for small creator businesses.

Kayla Moran, founder and managing attorney of Kayla Moran Law, said one‑sided contract terms and delayed payment schedules are common problems. “Often payment terms are net 60 or net 90, meaning a creator won't be paid for their work for up to 3 months,” Moran testified, and she described late or missing payments as a persistent issue for creators.

Christina Brennan described a resource gap: many creators lack access to advisors who can review contracts, advise on indemnification and limitation of liability clauses, or help decide whether to form an LLC or an S‑corp. Moran and Brennan recommended education and accessible referral lists for lawyers and accountants who understand creator business models.

Witnesses also described tax and registration burdens. Moran and others told the committee that many creators are unaware of quarterly estimated tax requirements; several witnesses said creators sometimes file taxes themselves rather than hire accountants because of cost pressures. Jesse Appel added that physical product sellers must navigate different sales‑tax registration and remittance rules in multiple states, creating administrative cost and complexity that small firms must outsource.

Panelists proposed concrete options for congressional or SBA action: model contract language limiting overly broad arbitration or indemnity clauses, SBA guidance on business classification and state nexus thresholds, and funding for education programs that teach creators about taxes, contracts and business formalization.

Committee members expressed interest in follow‑up materials and model approaches that could be shared widely with creator communities.