Patreon and sole proprietorships in Georgia — how to accept donations, save 1 % tax, and minimize commissions

If you are a creator on Patreon and want to legalize your income and minimize taxes and fees, in most cases in Georgia it makes sense to register as an Individual Entrepreneur (IE) and apply for small business status (1% of turnover), and withdraw payments from Patreon through a channel with minimal losses (Payoneer / local bank / PayPal, depending on the rates). Patreon supports several payment options, which you can see in your account settings.

1) A quick overview of how Patreon pays (and what you need to know)

• Patreon pays creators using the methods available in their country — in the payouts interface, you can see the methods supported for you: PayPal, Payoneer, bank transfers (wire/local bank), etc. The specific options available depend on the country of the account/validation.
• An important practical point: Patreon allows you to set up automatic and manual payments, and they have minimum thresholds for withdrawals using different methods (you can see this in the interface). Before making large payments, be sure to test one or two small withdrawals to measure delays and actual fees.

2) Why it is often more profitable to register as an individual entrepreneur and choose the “small business (1 %)” option

• In Georgia, individual entrepreneurs (IE) can be registered quickly (Public Service Hall/House of Justice). This provides a legal “box” for issuing documents/contracts and simplifies interaction with banks and tax authorities.
• For many freelancers and authors, the small business regime is advantageous (a special simplified regime with a low rate — approximately 1 % of turnover, subject to thresholds and conditions). Before applying, check the current limits and eligibility criteria.

3) Step by step: from registering as an individual entrepreneur to your first payment from Patreon

Step 1 — register as an individual entrepreneur

Submit an application to the Public Service Hall (House of Justice) — the procedure is usually quick and can often be done remotely through a power of attorney/intermediary (if necessary). You will need a legal address, passport, and a minimum set of data.

Step 2 — research and apply for small business status (1 %)

Find out the criteria (annual turnover threshold, exceptions by type of activity) and apply to the Revenue Service for simplified treatment. This must be done before you start receiving large amounts of income as an IE in order to benefit from the preferential rate.

Step 3 — Register with Patreon and set up your payout method

In your Patreon account, under Payouts / Getting paid, specify how you want to receive your money (PayPal, Payoneer, bank transfer, etc.). Patreon will show you the options available for your country.

Step 4 — Open a payment channel to receive payments

Register accounts with your chosen providers: Payoneer, PayPal, Wise (if Patreon allows it), or open a bank account that accepts international transfers. Payoneer is often convenient for international marketplaces and creators from countries without direct local payment support.

Step 5 — Make a test withdrawal

Make a test withdrawal of a small amount ($10—50) for each channel you are considering, and measure:

• how much the platform retained (Patreon fee/processing, if any),
• how much the provider retained (Payoneer/PayPal),
• what the conversion rate is and whether there are any incoming bank fees.

The result is the actual amount “on the card” in GEL. This is the most important step.

Step 6 — Taxes and reporting

Keep track of your income: date, amount in USD, commissions, conversion rate, and total in GEL. Based on your annual turnover, you pay 1 % (if in SBS) and submit your reports by the deadlines specified by the tax authorities. Keep your payment receipts and bank statements.

4) What withdrawal methods are usually available on Patreon and how to choose them

PayPal

Convenient and widespread. However, PayPal often charges high fees for receiving and converting funds, especially when transferring to local cards/banks in GEL currency. If customers or Patreon pay in USD, PayPal’s margin can “eat up” part of your income.

Payoneer

Often convenient for creators outside the US: allows you to have a receiving account in USD/EUR, convenient to withdraw to a local card or bank; Payoneer usually has competitive rates for receiving from platforms. Good for those who want to minimize intermediate losses.

Bank transfer (wire/local bank)

This can be inexpensive when using local direct deposit (if Patreon supports local banks in your country). SWIFT transfers are usually more expensive: there is a fixed fee charged by the sender and possible fees charged by the correspondent bank and the recipient bank. Always check your bank's incoming fees. Patreon

Other options (Stripe/crypto/others)

Patreon periodically changes its integrations and partners; check your account for possible new options (sometimes instant payouts/partner cards appear).

5) Calculation example (simplest) — how to calculate the “net” amount on the card

Assumptions: Patreon pays $100; Patreon does not charge any additional fees (platforms often charge processing fees for payment gateways); you try Payoneer → withdrawal to a Georgian card.

Calculation procedure:

1. $100 — platform → ≈$100 is credited to your Payoneer account (minus processing fees at the payment gateway, if any).
2. Payoneer converts at its own rate/spread when withdrawing to GEL (for example, interbank rate — 1.5 % spread).
3. The bank may charge a fixed fee for incoming transfers (if it is SWIFT) or nothing (if it is a local withdrawal).
4. As a result: the total in GEL = 100 × (effective rate after spread) − fixed fees.

Practical advice: keep a reserve of 2—5 % to cover all losses until you have measured the actual figures in tests.

6) Common mistakes and how to avoid them

• Not testing conclusions. Trusting other people's reviews is worse than one test conclusion on the selected channel.
• Ignoring currency accounting. Record every transaction: amount in USD, exchange rate, total in GEL. This will simplify the 1% calculation and reporting.
• Missing the deadline for small business registration before receiving income. Register your status in advance if you plan to receive regular income. PB Services Georgia
• Not taking into account incoming bank fees. This is especially important for SWIFT/wire transfers.

7) Quick checklist (to do right now)

• Register as an Individual Entrepreneur (IE) at the Public Service Hall/House of Justice.
• Apply for small business status (1 %) — check turnover limits and exemptions.
• Create an account with a payment provider (Payoneer/PayPal/bank) and link it to Patreon → Payouts.
• Make test withdrawals ($10—50) for each channel and record the actual amounts on the card.
• Set up an accounting table: date, USD, Patreon fee (if any), provider fee, exchange rate, total GEL.
• Agree with your accountant on the currency conversion method and the 1 % tax payment schedule.

Is it worth registering as a sole proprietor and withdrawing funds through Patreon?

Yes, if you are serious about income from subscribers, registering as a sole proprietor and setting up a small business (1%) almost always pays off: taxes are low, and the formality allows you to officially run a business and work with payment providers without any problems. The main thing is to test the withdrawal methods and keep accurate currency records.