LLC or Sole Proprietorship for 'no-budget' independent film ?

[Beowulf]

What is the name of your state (only U.S. law)? Minnesota

So I want to fund ($20,000 to $30,000) a super low 'no-budget' first time independent film (horror genre) that I have written and will produce. Should I, do i need to, form an LLC, or will a sole proprietorship suffice? I do have substantial personal savings that if possible I would like to shield should something go wrong with the film, but I have also read that a one-person LLC does not offer much of a shield? I will be buying liability insurance for the film. Is it really worth going the LLC route for this project, should I just stick with a sole proprietorship? Not holding anybody here to anything legally, I just am curious what anybody here with legal or even film backgrounds might offer in terms of advice, thoughts. Thank you in advance.

 

[quincy]

What is the name of your state (only U.S. law)? Minnesota

So I want to fund ($20,000 to $30,000) a super low 'no-budget' first time independent film (horror genre) that I have written and will produce. Should I, do i need to, form an LLC, or will a sole proprietorship suffice? I do have substantial personal savings that if possible I would like to shield should something go wrong with the film, but I have also read that a one-person LLC does not offer much of a shield? I will be buying liability insurance for the film. Is it really worth going the LLC route for this project, should I just stick with a sole proprietorship? Not holding anybody here to anything legally, I just am curious what anybody here with legal or even film backgrounds might offer in terms of advice, thoughts. Thank you in advance.

First, tort liability tends to be the greatest risk for any filmmaker. Having liability insurance enough to cover what can go wrong with the scripting and during production can be vital for a sole proprietor. Although you will have no personal liability protection as a sole proprietor, a benefit to a filmmaker with a sole proprietorship is sole control over the project. An LLC is often chosen by independent filmmakers for its tax benefits and the limits on personal liability (but a one member LLC will have the same tax treatment as a sole proprietorship).

What is best for you depends on facts (your finances) and factors (like if you hope to attract investors) that are best reviewed personally by a lawyer in your area.

Whatever you decide to do with your film company, however, please do not work with others without appropriate contracts in place - contracts best drafted by an attorney to protect you while meeting the specific needs of your project.

Good luck with your horror film.

 

[adjusterjack]

An LLC does not shield you from your personal liability or contractual liability.

Smart people who deal with LLCs, get personal guarantees from the owner.

Smart people who sue LLCs also name the owner as an individual.

I ran a private investigator agency as a sole proprietor. Had a million dollar professional liability policy. Never lost a minute of sleep.

 

[quincy]

An LLC does not shield you from your personal liability or contractual liability ...

As a general statement, this is false.