Hi everyone,
If you have a production company, when did you know it was time to register it as a LLC? Were you working under your company name as you were producing stuff without it being legally registered? What was that like? Did you launch it after making a film/ short/ pilot?
What is something you wish you knew prior to forming your company/s-corp/c-corp/LLC?
Thanks,
Kirsten
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Hi Kirsten! Set up your production LLC right away to allow it to begin its own life as an entity. That includes the whole government regulation, of course, as well as the bank account and associated credit, etc. That way, it's all set up as soon as you'd plan to put any expenses (and income, of course!) into the company's scope. You're protected, credit can begin to build for the LLC itself, and once you reach a certain threshold of income ($50k+ annually), switch it over to a C-Corp and reap further tax benefits.
So, to sum it up, get it going! Here's to moving fearlessly forward. = )
There is a time as a contractor where you are being paid via invoice that you could "do business as" a company name, until such time that you wish to register your LLC. So, you can add the "doing business as" name to the header of your invoices, to your email and website, but it would still be a sole proprietorship. When you are a contractor, you'll likely be adding your income and expenses to your taxes under "Schedule C".
Once you're making regular money (i.e. you know your business model and you know your clients), it will be worth your time to register as an LLC, which will require submitting taxes as a separate entity. If you hire anyone else as part of this business model, you should register for that LLC. Anything where there is liability involved, you should really secure the LLC. Also, if you are producing a project, you can start an LLC just for the project.
I hope that helps!
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Set up the umbrella LLC asap - as soon as I was starting to think about it. Then established bank and credit for the LLC along with legal rep and address. My reason for investing in the LLC before a page was written is/was for longevity of the business.
That's really good to hear, Cherelynn Baker! I've always felt like I started my LLC too early, but I like your take on it! LOL
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Back in 2006 outta fun. totally off the record, Named it "Darkness Productions", then made a short under the title, got an first place and my friends managed to squeeze around 3000 bucks from Ministry of culture for traveling expenses due to it....Balkan's crazy, tellin' ya