This is part 1 of Anker Reed HSC’s blog series entitled “To Incorporate or Not to Incorporate? That is the Question”.
This is the moment that you have been waiting for all of your life. The years of summer stock, off-off Broadway, and guest roles are over. You can smell it. You can taste it. Obscurity is a thing of the past-fame and fortune, here you come. Cha-ching! You are so close that you can see and smell the money and fame. A role in a television series or a part in a feature film. No more guest spots on “Friends” or “Home Improvement” or extra-work.
On those projects you were almost considered scenery. That was not really acting. One week of work; two lines of dialogue if you were lucky. Now you are going to be one of the stars. You have Emmy Awards and Oscars in your sights.
You have been around for a while in this business. You have made friends. And where there are friends, there is advice. Everyone has an idea. Everyone has a plan. Everyone knows the way to go. In the time that you have been a professional performer you have heard a lot of things. You have heard suggestions about hiring a personal manager or not hiring a personal manager. You have heard about this agent that is better than that agent. And you have heard about incorporating.
Everyone has been saying to incorporate. It seems that in Hollywood everyone in the entertainment industry has incorporated. One friend says to incorporate in California. Another friend says that Delaware is the place to incorporate. But what is the answer? Should you incorporate? What about other forms of business entities, such as a limited liability company or a partnership? And more importantly, what are the benefits and drawbacks to incorporating?
For answers to these questions you should see two people: an attorney and an accountant.
* For specific inquiries regarding a business legal matter that you may have, you are welcome to visit our Business Organization Formation legal services page.