I have had my own production company for a few years and have yet to make it an LLC. Now is the right time, but I am unsure what steps to take. How should I go about this? Thanks in advance for your advice.
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Jason, I just sent you a message with some suggestions
There are two pretty good States to do it in; Nevada and Maryland. If you are a USA Citizen. I used to have an LLC. FWIW. There is a place in Reno Nevada that does it online via attorney after the dust settled it was about 1000. to be incorporated with a forwarding mail service. Just Google LLC Reno NV and they should come up with a screamer add for 250ish.
I Used legal zoom saved me a lot of time & was cheap compared to other companies offering the same service
Like Elliot, I used Legalzoom as well. They are very reasonable and very thorough. The only question is where do you want to form your LLC. I know a lot of people either do it in Texas or Delaware. I chose Delaware. Keep in mind, depending on what state you live in, you will have to pay tax in your home state as well as the state you form your LLC in. There are always representatives at Legalzoom to help you.
I did mine in minnesota and the fee was 150.00
Does an LLC protect the business owner from personal liability when it comes to financing or defaulting on your financing?
it does if you file bankruptcy
they cannot attach personal assets unless you commuted fraud in the deal
Is there a way to set up a business so that the owner is also protected in case of Bankruptcy?
I think that is a question for Legalzoom o r perhaps a corporate attorney. Realize Legalzoom are not attorneys. I think they're more like a small army of paralegals.
Thanks Ron! I guess I can reach out to the guys at Pierce Law Group, They are very film/Entertainment friendly over there. I don't know if they are corporate attorneys, or are qualified to offer such business advice. I'd assume this would be common knowledge for most lawyers but I could be wrong.
I think that would be a wise thing to do. I'm not familiar with this law group but one that knows entertainment law is better in this regard. As I mentioned, I formed my Aspects of Entertainment as an LLC with Legalzoom in CA. I live in NC but formed the LLC in the state of Delaware for tax purposes. I have to pay annual taxes in both states which is under $500, which is reasonable. For legal matters I do have a firm in NYC that handles such matters for me.