Blackmagic Forum

I think it is time to kick it up a notch and start competing with some others who are doing commercial shoots.

Would you recommend going sole proprietor w/ a DBA or going LLC? I know the plusses and minuses of both from a general standpoint but how about with video Production?

I would be taking out a small equipment startup loan. My personal credit is excellent whereas my LLC credit would be blank. That is probably the biggest plus I see in going sole. Of course you're more likely to get good financing as an LLC but as a startup with no credit history it seems it'd be harder.

I'd appreciate any feedback from someone who has hung up their open sign recently using a small loan.

LLC formed in Nevada is probably your strongest organization from a legal standpoint. You can still get a personal loan and use that as a Capital Investment to the LLC for equipment purchases.

A sole proprietorship with a DBA (Doing Business As) is the simplest and least expensive business structure to set up. It allows you to operate your business under a different name while still maintaining your personal legal identity. However, as a sole proprietor, you will have unlimited personal liability for any debts or legal issues that arise from your business activities.

On the other hand, forming an LLC (Limited Liability Company) provides you with personal liability protection, meaning your personal assets are protected from any debts or legal issues that may arise from your business activities. Additionally, I can say that forming a Limited Liability Company (LLC) in Nevada can provide strong legal protection for your organization. In terms of financing, it is possible to obtain a personal or commercial loan and then invest that money into the LLC for the purpose of purchasing equipment.

The size of staff you plan to hire is also an important factor. Consider when deciding whether you plan to operate as: a solely one-person operation or, for example, not big in-house commercial animation video production studio. Than better to register your business as a sole proprietor with a DBA. Maybe you plan a rapid growth to a big business with certain number of employees or independent contractors. If you plan to hire employees, an LLC may provide greater flexibility and protection for your personal assets, as well as additional tax benefits.
Anyway, I’d suggest to consult with a legal or financial professional to determine the best structure for your business based on your specific needs and goals.

Reach out to an attorney and find out when works best for you. No one here can tell you the best way to how to protect your assets and what pathway you should take based on a long list of potential options longer term.