Protecting Your Personal Assets

By forming a Limited Liability Company (LLC), business owners can separate and protect their personal assets from the debts and obligations of their business. Business owners in the arts and entertainment industry often inquire about this service because they are seeking to protect personal property like their house, car, savings, and brokerage accounts.

Attracting Investors

An LLC may be beneficial to business owners in the arts and entertainment industry who are seeking to raise investment funds. Customers who form an LLC often issue membership interests in the LLC to investors in exchange for money or property, and the investors become members of the LLC. As members of an LLC, the investors may be entitled to certain rights (e.g., voting rights and the right to share in the profits and distributions of the company) and have certain responsibilities with respect to the LLC. We typically recommend that our customers consult with a licensed attorney to obtain advice before issuing interests in the company to investors; SEC regulations may apply.

Which State?

In deciding where to form a company, our clients consider many factors, including where their company intends to conduct its business. In addition, when several states are being considered for the place of formation, it is necessary to evaluate multiple items, such as the cost of forming the company in the state, the tax laws and business laws of the state, and whether it will be necessary for the company to qualify to conduct business in one or more other states. Many business owners form their LLC in the state where their company conducts, or intends to conduct, the majority of its business - especially if the company is expected to conduct its operations primarily or exclusively in one state.