Anyone run a Single-Member LLC?

thefilmgeek

thefilmgeek

I'm going to be starting up my LLC soon here, and it's going to be just me, Single-Member.

I was curious if anyone already ran one or has experience with being in one. I have a friend helping me set everything up, I was just wondering about some legalities for a single-member LLC.

I've been reading some court cases online of judges kind of bypassing the LLC status liability protection for the single-member for whatever reason.

My main concern is to ensure I'm protected personally from any lawsuits brought against my film that is produced under the LLC production company.
 
Sort by date Sort by votes
The biggest and most important difference I found was with an S Corp, profits have to be distrbuted in accordance with the amount of investement of all board members you can't simply divy it up 50/50 or some other equal distribution, whereas an LLC does need to be run by board members and the owner and distribute profits per whatever agreement made. There are a few other differences of course, but for me the biggest one was about the profit/tax difference which is regulated by the IRS; my interpretation of what I read made it sound like an S Corp was a little to restrictive for my purposes at this point in time. I am certainly not a tax expert, I don't do well with numbers to begin with, but hope this helps a little.
Being yours is a one man operation, an LLC might be the only feasible option (other than just operating as a sole proprietorship), an LLc allows you to incorporate your earnings as income into your personal bank account, an S Corp forces you to keep your bank account seperate from your business account and are subject to taxes on earned profts from your business, then you get taxed for income as well.
 
Last edited:
Upvote 0 Downvote
Member managed LLC

I assume from your post you are organizing a member managed LLC. Your question is a hard one to answer because every state is different in how they treat LLC's.
One key thing to remember in running an LLC or corporation is that you HAVE to keep your personal and business activities absolutely, completely, separate. If you don't, then what you described judges doing can easily happen; piercing the corporate veil. And even if you do keep them separate, all of your activities vis a vis the LLC must be honest and on the up and up. You cannot avoid liability just because you did it through an LLC when you commit a wrongdoing.
I suggest you contact a lawyer about this.

Jack
indiefilmbiz.info
 
Upvote 0 Downvote
Well, I plan on being on the up and up. I'm going to keep all my personal finances and assets completely seperate from my LLC finances and assets. I'm going to run it like a business. I just want to make sure I am afforded the protection I deserve from the LLC if anything ever arose, aka someone sued my LLC for copyright over a film it produced, they wouldn't be able to touch my personal assets. Really copyright issues are the only thing I'm concerned with -- these days, people are so sue happy, they'll look for anything that's remotely similar to their copyright to sue you over.
 
Upvote 0 Downvote
jheape said:
I.
One key thing to remember in running an LLC or corporation is that you HAVE to keep your personal and business activities absolutely, completely, separate. If you don't, then what you described judges doing can easily happen; piercing the corporate veil. I suggest you contact a lawyer about this.

Jack
indiefilmbiz.info
Click to expand...

That's not what this website states http://www.selfemployedweb.com/s-corp-vs-llc.htm
nor does the IRS see it that way- http://www.irs.gov/pub/irs-pdf/p3402.pdf

Pass through taxation- Profits and losses are reported on individual tax returns. but I do agree with contacting a lawyer, I can not claim to know all the ins and outs of these two.
 
Upvote 0 Downvote
Yeah, I hear ya, I'm still trying to figure all this out for myself, so don't feel like the Lone Ranger on this. I just did my taxes as a Sole Proprietorship which resulted in pretty decent returns. I'm not sure I need the protection of an LLC yet though as I work on small projects for the time being, but it's definately something I've been thinking about.
 
Upvote 0 Downvote
Well, the thing is with LLC apparently I just jot down all the tax stuff on my personal tax forms, a fall through tax or something. Basically all I'll be putting down are losses most likely, as I seriously doubt I'll be making any profits these first few years.

I'm doing single-member LLC, and picked up a few books that are going to help me set it up, especially with regards to the operating agreement which is apparently very important. I got LLC Maker from Nolo.com, and another book with lots of small business forms and operating agreements for LLC's from amazon for the future.
 
Upvote 0 Downvote
I started my business last year. the IRS doesn't really expect to see profits from small businesses for about 3-5 years. I had a loss of $4800 for my first year, probably not bad compared to other people's businesses, but then again, I don't run my business as a full time business yet. But, with me teaming up with another artist this year, I may look into the LLC thing, I might just break down and pay for a lawyer and CPA, expensive, but it's all a tax write off, and just might be worth it in the long run.
 
Upvote 0 Downvote
Since I'll only be doing a single member LLC with myself as a Production Company for my film this summer, I'm not gonna worry about any accountants. I seriously doubt any sort of influx of money will happen that will necessitate any sort of real tax work. Basically the LLC will be starting with 1,000 of my own capital, and I'll be using that to 'rent' the video equipment I'll be using from a friend who owns it all. That is, an XH-A1, lights, sound, etc etc.

Odds are I'll end up being 1,000 in the hole the first year at the least, because I seriously doubt I'll see a return on the rental investment for this first film.

Do you have aol instant messenger or anything, EV?
 
Upvote 0 Downvote
Just email. reel1@2reelfx.com Trust me, i'm no expert. i'm probably a Novice video editor and don't even qualify to be an amatuer film maker, but I do make some dough with what I do, so I'll offer advice and tips on the limited knowledge I do have, but there are plenty of more qualified people on this Forum to help you. Half of my operations are based purely on what I read on this Forum.
 
Upvote 0 Downvote
I just ordered up LLC For Dummies from amazon. All the reviews rave about it, so that's good enough for me. I figure the more I read and study on the subject, the more prepared I'll be.
 
Upvote 0 Downvote
Hey EV, do you know if you're required to file taxes on the LLC (single member of course attached to your personal taxes) if you don't make any profit?

I know if your gross income is less than 8k, you aren't required to file income taxes. Does the same hold for an LLC? If you don't make a certain amount of money, you aren't required to file?
 
Upvote 0 Downvote
That's a good question. Since it's pass-through taxation, I wouldn't think so as long as your gross income doesn't go over 8K (if that's the rule). I heard on a radio station that you really only have to file if you owe the IRS. If you are supposed to get something back, they don't really mind if you don't ever file, but you know, I have Turbo Tax, I'm no tax expert. The IRS says that most people who do their own taxes get more money back and have less errors than those who go through H&R Block, Jackson Hewitt, and other franchise tax places. Turbo Tax walks you through over 350 deductions , it's real easy, I recommend that if you can't get a lawyer or CPA, use Turbo Tax for your LLC.
 
Upvote 0 Downvote
EvsFX08 said:
you really only have to file if you owe the IRS. If you are supposed to get something back, they don't really mind if you don't ever file
Click to expand...

Dude... not a good idea. At all. Ever.

As far as LLC (and tax) law, it varies from state to state.

I just had the pleasure of informing my (musician) brother, that yes... he does indeed owe the State of California a mighty $800 in state taxes (even though he hasn't sold a dollar in album sales). There's just like... this minimum, ya' know. :rolleyes:
 
Upvote 0 Downvote
Well Zen, I think that it's better to owe the State of California then to be owed. At least you don't have to wait forever to be paid.

But before it's over, Arnold's going to have a breathing tax!
 
Upvote 0 Downvote
You must log in or register to reply here.
Back
Top