Sole proprietorship in Georgia and Instagram monetization: from setting up a payout account to 1 % tax — a practical guide

In short (30‐second solution)

If you want to earn money directly through Instagram and live in Georgia, the logic is usually as follows:

1. Register as an individual entrepreneur (IE).
2. Apply for the “small business” regime (1% with the appropriate turnover).
3. Get eligibility on Instagram (Creator/Business profile + compliance with monetization rules).
4. Add a payout account in Creator Studio.
5. Test payments and choose a provider (Payoneer / Wise / bank) with the best “net” income on the card.

What Instagram monetization tools are available

Instagram is constantly changing and testing tools, but at the moment, the main official ways to earn money within the Meta ecosystem are:

1. Subscriptions (paid subscription) — subscribers pay a monthly fee for exclusive content.
2. Badges (Live badges) — viewers purchase badges during live broadcasts to support the creator.
3. Bonuses / Performance bonuses — temporary and program payments from Instagram for fulfilling certain conditions (Reels/Posts performance, invitations to bonus programs). The availability/terms of bonuses are subject to change and may be limited by country and time.
4. Gifts / Gifts for Reels (virtual gifts) — features for viewers to send virtual gifts/tips; the name and mechanics may change with releases.
5. Branded Content / Paid partnerships — direct deals with brands through Branded Content tools and Creator Marketplace (these are off‐platform earnings, but processed through Instagram tools).

Important: the availability of specific tools depends on the region, age, account type, and compliance with Creator Monetization Policies — some programs are tested and later closed or replaced.

First steps: eligibility, payout account, and limits

1. Make your profile “professional” (Creator/Business) and ensure that you comply with Instagram/Meta monetization rules. If you do not comply with the rules, access to the tools will be denied.
2. Add a payout account in Creator Studio/Monetization (Payout Settings). Without a linked payout account, Instagram may limit payments (there are limits on amounts for unregistered payout accounts). For example, without a payout account, you can earn a limited amount (the threshold depends on the tools).
3. Restrictions and caps. Instagram states that without a payout account, there is a limit on earnings per tool (for example, small limits before payout is enabled). It is strongly recommended to set up payout before launching large‐scale monetization.

Which legal route to choose

• IE (Individual Entrepreneur) is the simplest form for freelancers/creators: registration is quick, it is easier to open accounts and work with payment providers.
• Small Business (1 %) — provided that the turnover limit in Georgia is met, an IE can pay 1 % of turnover (this is often beneficial for authors). Check the exact thresholds and conditions with your local accountant/Revenue Service before applying. (I recommend registering for SBS before starting regular payments.)

Practical steps

1. Preparation: check that your account complies with Instagram Monetization Policies. Register a Creator/Business profile.
2. Register as an individual entrepreneur and SBS: register as an Individual Entrepreneur in Georgia (at the Public Service Hall or remotely through an intermediary) and, if possible, apply for Small Business (1 %).
3. Enabling monetization on Instagram: in Creator Studio → Monetization → check eligibility for each tool and request access.
4. Adding a payout account: in the payment settings, add a payment account (Payoneer/Wise/bank). Without this, many features are limited.
5. Test conclusions: at the first opportunity, make a test withdrawal of a small amount (for example, $20—50) and record how much “net” came to the card after all fees and conversions. This gives a real picture, not just theory.
6. Accounting and reporting: keep a table with the date, amount (USD), platform commission (if any), provider fee, conversion rate, and total in GEL. At the end of the year, pay 1 % (if SBS) and keep the documents.

How to choose a withdrawal channel

• Payoneer / Wise (if Instagram/Meta allow you to link them) often offer a favorable effective rate when converting USD→GEL compared to a direct SWIFT transfer to a local bank.
• Direct bank transfer (SWIFT) — convenient, but may involve higher fixed fees and correspondent payments; sometimes optimal for large amounts, but not always for regular micro‐payments.
• Local provider / Instant payout (if available) — Meta sometimes offers fast/instant withdrawals through partners (option depends on region). Always do a test.

Common mistakes and how to avoid them

• Not setting up a payout account in advance → payments are limited/frozen. Set it up before you start.
• Not doing test withdrawals → expectations of “how much will come in” often do not match reality. Always test.
• Ignoring monetization rules (copyright, content policies) — violations can result in access to tools and payments being blocked.
• Not keeping currency records — for tax purposes in Georgia, all income is converted to GEL using a fixed method; keep all statements.

Short checklist of things to do right now

• Switch your account to Creator/Business and check compliance with Monetization Policies.
• Register as a sole proprietor in Georgia (if you plan to withdraw income regularly).
• Apply for Small Business (1 %) if you qualify based on turnover.
• In Creator Studio → Monetization → set up a payout account and complete KYC.
• Make a test withdrawal of $20—50 to your chosen channel and record the actual fees/exchange rate.
• Set up a payment tracking table (date, USD, fees, exchange rate, total GEL).

Important warning about feature stability

Meta often tests and changes monetization programs (bonuses appear, then test payments are closed, etc.). Therefore, everything you see in your Creator Dashboard is the main source of truth, and general descriptions quickly become outdated. It is recommended to regularly check the official Instagram Creators help center and the payouts section.