Just starting out; should I operate as a sole proprietorship, DBA or LLC?

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  • Faust New England
    Registered User
    • Dec 2014
    • 10

    #1

    Just starting out; should I operate as a sole proprietorship, DBA or LLC?

    I want to shoot some amateur video content; I have a few ideas for some shoots that cater to some relatively under-served niches but that can also have some potential for broader appeal outside their niche.

    I am an absolute newb at this; I'm just an individual with no experience in this area and no connections. However, I've spent the past few months deeply researching and have some preliminary infrastructure set up to pursue this.

    I've drawn up what I consider to be a fairly air-tight model release form after reading dozens of model releases for both adult and mainstream work (willing to let a lawyer inspect it). I've drawn up templates for 2257 Affidavits, and found a cheap, really reputable third-party Custodian of Records service that caters to a lot of adult sites. I set up 2 safety deposit boxes at different banks to store hard copies of any/every document I need for this endeavor; I have cameras, lighting, video editing software; all I need is my first model and a place to shoot

    The only question is, should I start out as an individual sole proprietor, a DBA or an LLC?

    My business plan is to set up a clip store. As I'm building up my clip store, I'll also start a few porn Tumblr blogs and link to a bunch of other porn blogs while also occasionally providing some free content and links from my clip store. Further down the line, if I can generate a decent amount of revenue (I have no delusions about getting rich off of this), I'll pony up the money to have someone build me a website; I've already designed what the site would "look like," but I just don't know how to build a functional website as that is something I have no experience with.

    I have $11,000 of my own money saved up; I'm willing to pour in another $20,000 over the next 2 years before I absolutely have to start making money back. I intend for this to be entirely self-financed at the start, as I don't want to start out in debt or take out loans.

    For this strategy, would it be best to start out as an individual sole proprietor, a DBA or an LLC?
  • Captain Kawaii
    So Fucking Banned
    • Oct 2007
    • 6748

    #2
    Best strategy? Ask a lawyer. You are presumably in NE. Shoot an e-mail over to Colin at Wasteland and maybe he can recommend one around Boston. This is not the place to ask.
    YNOT has LAJ who can turn you on to someone.

    Comment

    • Faust New England
      Registered User
      • Dec 2014
      • 10

      #3
      Originally posted by Captain Kawaii
      Best strategy? Ask a lawyer. You are presumably in NE. Shoot an e-mail over to Colin at Wasteland and maybe he can recommend one around Boston. This is not the place to ask.
      YNOT has LAJ who can turn you on to someone.
      Just did some Googling; I assume you mean Colin Rowntree of the BDSM website Wasteland.com?

      Comment

      • Barry-xlovecam
        It's 42
        • Jun 2010
        • 18083

        #4
        No financial institution lender will lend on a new porn business, most won't will touch porn. So, you can max out your credit cards or mortgage your house to raise working capital ...

        A LLC or a Sub Chapter S or Schedule C Corporation will protect your personal assets from tort liability (lawsuits).

        It costs $10.00 in my county to file a DBA, use a generic sounding business name and open a bank account. Make some money then spend some incorporating.

        One tip: You can get investors together to file a corporation as the founding principals , but you cannot solicit new investors for an existing corporation without having a securities offer approved by the state you are incorporated in and any state that you sell the shares in.

        So, a lot depends on your personal financial position and your future funding options considered.

        Comment

        • Mr Pheer
          So Fucking Banned
          • Dec 2002
          • 22083

          #5
          Do a DBA, and then see if you can sell some content first.

          Comment

          • DBS.US
            Geo Cities
            • Aug 2003
            • 11843

            #6
            A DBA is step number one, but remember after you fill out the DBA paper work the city you write down on the application will be calling for your business license and tax prepayment.
            Have an unused domain? Make a Free Chaturbate White Label site and be making money tonight

            Comment

            • Red Ezra
              redezra.com
              • May 2004
              • 4680

              #7
              Originally posted by DBS.US
              A DBA is step number one, but remember after you fill out the DBA paper work the city you write down on the application will be calling for your business license and tax prepayment.
              real talk right there..

              Comment

              • Captain Kawaii
                So Fucking Banned
                • Oct 2007
                • 6748

                #8
                Originally posted by Faust New England
                Just did some Googling; I assume you mean Colin Rowntree of the BDSM website Wasteland.com?
                Yes. He is NE based as well. All great advice after me. I only suggested a lawyer since you are a shooter and could probably use a handle on 2257/age verification records you will need to maintain.

                Comment

                • Joshua G
                  dumb libs love censorship
                  • Jul 2008
                  • 8198

                  #9
                  you start up a single member LLC.

                  the benefit is that you can combine your business into your personal federal taxes on schedule C. & you have the legal benefits of an LLC that is separate from your personal affairs. So if someone sues you, it would be the LLC on the hook not your personal name.

                  if you are really savvy, start up your LLC in delaware, its cheap, they protect your identity, & if your state has high fees for small business, you can avoid that bullshit. there are 3rd party companies that do all the ppwork for you, just google delaware LLC & start reading up.

                  after the LLC is set up, get a lawyer with 2257 experience to draft up shoot contracts for the LLC, ensure they include a hold harmless clause. You should have the lawyer also create a 3rd party production agreement so you can hire shooters to shoot for you & convey the shoot copyright to your LLC.

                  GL.

                  Comment

                  • Barry-xlovecam
                    It's 42
                    • Jun 2010
                    • 18083

                    #10
                    Originally posted by Joshua G
                    [S]o if someone sues you, it would be the LLC on the hook not your personal name.
                    Corrected: it would be the LLC's assets on the hook not your personal n̶a̶m̶e̶ assets.

                    Tax pass through can be accomplished with a LLC or a Sub chapter S corporation -- get advice from an IRS enrolled accountant or a CPA.

                    Using a foreign corporation (not in your state vs. a domestic corporation) is a fallacy. If you are a foreign corporation, doing business in your state, you will need to register as a foreign entity and pay taxes according to your state's laws, on you in-state revenues and assets -- so it may cost you more in the long run. A Delaware incorporation will not obscure your identity either-- in most cases your filing of the foreign entity in your state (to operate legally) would require the officer's names to be listed if that is the procedure for domestic corporations.

                    Here is an example from Massachusetts http://www.sec.state.ma.us/cor/corpd...3950c11348.pdf

                    (8) Names and business addresses of its current officers and directors:
                    NAME
                    BUSINESS ADDRESS
                    President:
                    Vice-president:
                    Treasurer:
                    Secretary:
                    Assistant secretary:
                    Director(s):
                    Attach certificate of legal existence or a certificate of good standing issued by an offi cer or agency properly authorized in the
                    jurisdiction of organization. If the certificate is in a foreign language, a translation thereof under oath of the translator shall be
                    attached.
                    A Delaware corporation filing is for state tax reasons and for SEC laws and for large corporations. It's a joke for small companies. Check the filing requirement with your state -- you cannot do business in a jurisdiction (a state) without some sort of business filing naming the officers in most places.

                    There is no national (nationwide) incorporation in the USA (period).

                    Stop the comic-book advice ...

                    Comment

                    • OneHungLo
                      So Fucking Banned
                      • May 2001
                      • 40906

                      #11
                      Originally posted by Barry-xlovecam
                      Corrected: it would be the LLC's assets on the hook not your personal n̶a̶m̶e̶ assets.
                      That's not always the case. Single member LLCs don't always hold up.

                      If you have anything of value I wouldn't conduct any business till you speak with an attorney.

                      Comment

                      • Barry-xlovecam
                        It's 42
                        • Jun 2010
                        • 18083

                        #12
                        Originally posted by OneHungLo
                        That's not always the case. Single member LLCs don't always hold up.

                        If you have anything of value I wouldn't conduct any business till you speak with an attorney.
                        Do a little search on 'piercing the corporate veil' - https://www.google.com/search?q=pier...ity+protection - if you don't dot your i's and cross your t's in your incorporation, your incorporation will mean nothing and you may be found personally liable in a lawsuit.

                        The corporation code is a "license to work law" for the legal and accounting community ...

                        Comment

                        • Faust New England
                          Registered User
                          • Dec 2014
                          • 10

                          #13
                          Originally posted by Captain Kawaii
                          Yes. He is NE based as well. All great advice after me. I only suggested a lawyer since you are a shooter and could probably use a handle on 2257/age verification records you will need to maintain.
                          Fortunately, the third-party Custodian of Records service I found is run by an attorney who has direct experience in this industry and offers consultation services in this area; I found a lot of sites that list him on their 2257 Compliance Statement pages, so I think that's covered pretty well.

                          Comment

                          • Faust New England
                            Registered User
                            • Dec 2014
                            • 10

                            #14
                            Originally posted by Joshua G

                            After the LLC is set up, get a lawyer with 2257 experience to draft up shoot contracts for the LLC, ensure they include a hold harmless clause. You should have the lawyer also create a 3rd party production agreement so you can hire shooters to shoot for you & convey the shoot copyright to your LLC.

                            GL.
                            My release is stacked with hold-harmless clauses. I'm going to have the attorney I found review it and suggest additions and omissions; I figured it would be cheaper to have him review an existing release than draw up an entirely new one from scratch.

                            Question; you wouldn't happen to be based in Connecticut, are you?

                            Comment

                            • Faust New England
                              Registered User
                              • Dec 2014
                              • 10

                              #15
                              All great advice here; thanks again. I had figured that I would eventually have to form an LLC at some point in the future; I just wasn't sure if I should start out as one or transition into it later on down the line. Until then, it's sounding like the DBA is the way to go.

                              Just one last question; my town's DBA filing includes a section where you have to list the nature of business you hope to do. Has anyone else encountered those before? If so, what did you list? I'm thinking of listing "Photography/Videography" or "Web Entertainment;" accurate but vague.

                              Comment

                              • Barry-xlovecam
                                It's 42
                                • Jun 2010
                                • 18083

                                #16
                                Find out from a licensed attorney in CT if it's lawful to produce porn for distribution in CT;
                                Criminal Jury Instructions 7.4-1

                                Producing porn is only explicitly lawful on California and New Hampshire that I am sure of.

                                Contracts that are for an unlawful purpose are set aside and nullified in a court of law.

                                Describe yourself as a web developer or a plain videographer (graphic arts?). You would not put down dog and cat photographer, would you?

                                Comment

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