Loan-Out Company
From ForcaWiki, the simple encyclopedia
| In one sentence | A small company that a single actor, writer, or director sets up so that their services can be hired out to movies through the company instead of hiring the person directly. |
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| Category | Finance |
| Related | Limited Liability Company (LLC), Talent |
Imagine a talented tutor who, instead of being hired directly by families, sets up their own little tutoring business, and families technically hire the business, which then sends the tutor to do the actual work.
A loan-out company works the same way for movie talent. It is a corporation, often a limited liability company, whose only real purpose is to "loan out" the services of its one owner, usually a writer, director, or actor, to movies and studios that hire them.
Fun facts
- Loan-out companies can offer real tax and legal advantages, which is a big part of why so much Talent uses them instead of being hired as an individual.
- A studio technically signs a contract with the loan-out company, not directly with the actor or director themselves, even though everyone knows exactly who is really doing the work.
- Many well known actors and directors have their own personally named loan-out company behind the scenes of every project they work on.