When looking at state production tax credits, it is easy to get lulled into a false sense of security by looking at the gross percentage offered. You see 20%, 25%, or even up to 40%. Wow! I can decrease my budget by that amount. If you do that you could be making a serious financial error, particularly if you decide not to bring in financial specialists and accountants from the beginning to help guide you through the process. Unlike many problems in production, you can’t fix
There is a lot of talk about the advantage of starting a “loan-out company” under the new tax law if you are an entertainment independent contractor. A “loan-out company” is a corporation (S-Corp, C-Corp or LLC) created whereby you would be an employee of the new corporation rather than being hired directly by a third party. This would allow an individual to pass through expenses the company may deduct that are possibly no longer deductible by individuals under the new plan.