What does Loan-Out Company mean?
Loan-Out Company refers to a business entity, typically an LLC or corporation, that an actor, director, or other entertainment professional creates to provide their services to production companies. Instead of contracting directly with the individual, a production company hires the loan-out company, which “loans” the services of the professional to the production. This structure provides tax benefits, liability protection, and simplifies the management of earnings and expenses for the professional.
Example:An actor forms a loan-out company to handle their contracts with film studios, allowing them to take advantage of tax benefits and manage their earnings more efficiently.
Example: A director is hired through their loan-out company, which handles the legal and financial aspects of their work on a feature film.
Did You Know?
Many high-profile actors and directors use loan-out companies to protect their personal assets and maximize tax efficiency!
You can also find “Loan-Out Company” and related terms in this category: Contracts and Agreements.
