Hi Bonnie,
We met at the Actors Comedy Studio Showcase in October. I’m a friend of Sarah McLean’s, who encouraged me to sign up for your newsletter earlier this year, so I’ve been enjoying your BonBlasts ever since. However, I’m currently behind at the moment (D’oh!), so I finally had the chance to read your article on incorporating.
First of all, incorporating is something I’ve been thinking about for a while now, so I’m really grateful that you took the time to share your personal experience. However, I think I may be more confused than ever (in no way due to your article, but because of my own situation).
I created a webseries and am looking to form an LLC to protect myself from liability (I shoot most of the scenes in my house, which I own), but am wondering now if it’s necessary to create two separate entities — by forming one corporation for me as an actor and the other for the series — or if one corporation would house both.
I’m assuming two would be best, especially since I’ve been researching the formation of a 501(c)(3) for the possibility of receiving tax-deductible donations when it comes time to raise funds for the project. Obviously, I couldn’t form a 501(c)(3) for myself as an actor, as nice as that might sound.
I know you’re not a CPA or a lawyer, but it’s becoming more and more apparent to me that I need to speak with a professional. I have gotten referrals to a CPA and attorneys from other producer friends, but the base rate I’ve come across is either $1K (for the CPA), or $300 per hour for the attorneys. I realize it’s important, but I’m not really in a position to afford either option. Therefore, I was wondering if you would be willing to recommend anyone.
I’m a smart, hardworking person, so I can file all the necessary paperwork myself; I’m basically just looking for legal counsel to weigh all the options.
I am grateful for any assistance you are able to provide. Thanks so much and happy holidays!
Cheers,
Allison Oliver
Hey gorgeous. Good to see you in my inbox. So glad you’re enjoying the BonBlasts! 🙂
Quick thoughts on your issue. 🙂 If you create a C-Corp, you can have LLCs under it, now and then, whenever you need to create more “disposable” companies like the ones that produce projects and then fold after all the money is paid out and the project is over. You’ll be protected at the highest level through your corporation, and the LLCs that live under the umbrella of the corporation can have partners from outside your corporation, etc.
It’s actually pretty cool, and definitely the book Inc. Yourself will cover a lot of those specifics, while you’re shopping for people with whom to meet about all this.
I’m sending you three referrals privately, and all of these folks will take your call if you drop my name, and hear your situation then quote you a price for a consult, if they believe you need one. But be sure to read that book BEFORE you call them up, because asking questions based on a foundation of knowing your options will get you farther with them, and possibly without your having to spend much (or anything).
Oh, and not that you asked, but another reader wrote in to ask about naming her corporation, and I realized I wanted to explain to all readers of The Actors Voice why it’s a bad idea to name your corporation “Your Name, Inc.”
You’re trying to distance yourself as an officer of your corporation from that entity. Let’s say something goes off the rails and your corporation is sued. You have a very difficult time protecting your personal assets from seizure if your company shares your name. Just something to consider!
I have to say, I’m really excited about all of the follow-up the “Incorporate” column yielded! Seeing artists run their businesses AS businesses is just a lovely thing! 🙂
Bonnie Gillespie is living her dreams by helping others figure out how to live theirs. Wanna work with Bon? Start here. Thanks!
Originally published by Actors Access at http://more.showfax.com/columns/avoice/archives/001601.html. Please support the many wonderful resources provided by the Breakdown Services family. This posting is the author’s personal archive.