PRODUCTION TIPS: What is a Loan-Out Company? And Should I Form One?
Although I wrote this originally for El Blog de HOLA with actors in mind, loan-out companies are used by artists and entertainers of all stripes; directors, musicians, writers, producers, fashion designers, etc. Therefore, the following below is beneficial to you too if you have reached a certain level of success in the arts and entertainment industries. +++++++ “I’ve heard that a lot of Hollywood actors have a loan-out company for their acting services. What is a loan-out company and should I form one?” A loan-out company is a business entity formed by entertainers like actors, musicians, directors, producers, etc. (“owner”) to provide their services under the guise of “employee” to a third party like a studio, production company, television network, record label, etc. Although usually a C corporation (one that is taxed separately from its owners), the loan-out can be an LLC (limited liability company)or an S corporation. It is called a loan-out because the company “le
