What legal structure should you choose for your media production company?
First, this isn't legal advice. If that is what you want consult a business, entertainment, or media attorney; business school or formal education; your nearest library; or your favorite search engine and teach yourself. Presuming that brought you here, this is the thought process that got this ball rolling. Do with it what you will and accept the insight for what it is.
There are options though like any other business venture. Limited Liability Companies (LLC) are flexible and have benefits of a few other forms. This was the simplest to establish and easiest to understand so the LLC was our preference. But what does it mean?
It is a legal business entity that blends the characteristics of a corporation and a partnership/sole proprietorship. Really in the name alone, the liability is limited too. The members have a minimal exposure of their personal assets against the liabilities of the organization, with the exception of a few circumstances. Income taxes, by default, pass-through the organization. There are disadvantages too regarding certain tax implications, potential investment considerations, and adjudication or mediation if there are multiple stakeholders in the organization.
That's just one option though. S-Corporations and C-Corporations are also relevant structures for a media company. There are variations to the advantages and disadvantages that may appeal more highly for you though. I prefer to start researching most business-related topics on https://www.investopedia.com. I like the way they write and break down concepts. Once I feel like I've grasped a concept, I'll do more research and make a more informed decision.
Informed consent doesn't have to be someone else's problem for you. You can own your knowledge gaps, account for your own ignorance, and then seek wise council. Just make sure if you intend on spending money or time to learn from a professional, that you've already prioritized your efforts to familiarize yourself with the material. It'll likely save you time, money, effort, stress, and a hairline.
Until then, keep following along here for how we continue to evolve. Join us for our first podcast at https://www.TransactingValuePodcast.com, and we'll grow through life together!
