Need to go LLC- for DOC FILM?

1 reply [Last post]
Joined: May 10 2006

:) Hello again.

Thank you for your honesty. With time constraints it is a necessity. I wrote previoulsy about my current doc- shooting in central america and my obsession with having the right camera, firestore vs. tape, and film visa's.

:eek: 20 obsessions and only 3 days later, here I am again seeking your experience.

I am in the midst of handling paperwork and speaking with my lawyer (pro bono) She has suggested I form an LLC. This is something I have thought about for years- I am now an "independant contractor" 1099 via DBA.

She says, to list the LLC on the paperwork covers my ass vs. my name alone. I am curious, I own a car, and a shitload of equipment (25,000+) but that is all, I rent.

Basically, I am interested in this option- because I want to open a seperate bis account with the Tax ID number, to keep my funds seperate. I have a NGO sponsor, whom we are signing fiscal sponsorship paperwork this week. The director, is working with me on the doc and will use it for her fundraising b/c the subject is tied to her NGO. However, the non-profit has never acted as a fiscal sponsor.

She will cut me a large check (from money I raise for the doc-via the NGO) I feel I need a seperate account to manage the funds from. Can I do this with a sep. personal account and continue to file 1099?

I am open to any feedback about the necessity of an LLC in my situation.

I appreciate your time greatly, as I am running out. :eek:

:D Open Your Senses: New Media As An ARt!;)

Joined: Jul 18 2003

Most people here are primarily UK, and advice relevant here may not be so in the US.

By and large, forming a limited company has pros and cons - pros are that it is exactly that, limited liability. Liabilities stop with the company. It may also be more tax efficient. Cons are that it is more complex, accounts have to be filed, and generally the advice I've had is that employing an accountant becomes even more of a good idea.

May be worth getting a second expert opinion, but if your lawyer is suggesting it.........?