Setting up an LLC

Hello - I am in the process of developing an acting career in New Mexico. I was wondering if it is to my benefit to set up an LLC to track expenses versus income received. Nowadays, production companies are good about employees completing all payroll paperwork where before I used to complete a Schedule K for supplemental income. However, I still incur expenses such as travel whether it is mileage driving to and from audtions, call-backs and filming or via air. Additionally, I am contracting to pay my agent 10% of my gross income. Finally, this year I will have to go Taft-Hartley (SAG) which will also be a significant expense. I realize the tax laws won't allow me deduct items like health club memberships or haircuts to maintain my appearance. I just want to see where relief is availa

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Submitted 351 days ago...

primetime001

Expert (962)

The main advantage of LLCs is that they protect liability.

If you were ever sued, possibly over a contract dispute for instance, the LLC would protect you. With LLCs, your taxes are still filed once a year with your individual return. There are additional deductions and benefits with LLCs, but there also additional taxes and bookkeeping.

I would also say hire a tax accountant (CPA) to help you do your taxes and sort through your deductions. They know the tax laws inside-out and can provide great advice.

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