LegalZoom
Affordable online legal services for forming LLCs and managing business entities
Overview
LegalZoom is a widely used online legal services platform that helps individuals and small businesses form LLCs, file trademarks, draft contracts, and handle other legal needs. For actors, it simplifies the process of setting up a loan-out company or production entity.
The LLC formation process is guided step by step, handling state filings, operating agreements, and EIN applications. LegalZoom can also assist with contract templates, copyright registrations, and ongoing compliance requirements.
How It Works
Many actors form LLCs to manage their income for tax purposes, liability protection, and professional credibility. LegalZoom makes this accessible without requiring an expensive entertainment attorney for the basic formation process.
LLC formation packages start at approximately $79 plus state filing fees. Additional services like registered agent representation and annual compliance packages are available at extra cost.
Who Uses It
A practical option for actors ready to formalize their business structure with an LLC or loan-out company. While LegalZoom handles formation well, consult an entertainment accountant to determine whether an LLC is the right structure for your specific situation. LegalZoom also offers ongoing compliance services that handle annual report filings, registered agent representation, and other maintenance tasks that are easy to forget but legally required in most states. The platform's contract template library can be useful for actors who need basic agreements for independent projects, though complex entertainment contracts should always be reviewed by a qualified entertainment attorney.
Pricing & Plans
LegalZoom LLC formation packages start at zero dollars for the basic tier plus mandatory state filing fees, which vary by state and typically range from fifty to five hundred dollars depending on your jurisdiction. The standard package at approximately two hundred and forty-nine dollars adds an operating agreement, an EIN application, and a comprehensive organizational meeting guide. The premium package at approximately three hundred and ninety-nine dollars includes everything in the standard tier plus expedited filing, a customizable website, and a domain name with hosting. Registered agent service, which is required in most states, costs approximately two hundred and ninety-nine dollars per year if purchased separately or may be included free for the first year with certain packages. The Business Advisory Plan at approximately thirty-one dollars and twenty-five cents per month provides ongoing access to attorney consultations, unlimited document reviews, and annual compliance filing assistance. State filing fees are always additional and non-negotiable, so research your specific state's fees before budgeting for the total formation cost.
Pros & Cons
What's Great
LegalZoom's guided LLC formation process is genuinely beginner-friendly, walking you through each step with clear explanations that make legal concepts accessible to non-lawyers. The platform handles the complex state filing paperwork entirely, reducing the risk of errors that could delay your formation or create compliance issues down the line. The registered agent service ensures you have a professional address for legal correspondence, which is important for actors who move frequently or prefer not to use their home address on public business filings. LegalZoom's scale and established reputation mean that their filings are processed efficiently by state agencies that are familiar with their standardized submissions. The platform offers a money-back guarantee on formation services if you are not satisfied, reducing the financial risk of trying the service. Customer support is available by phone, email, and chat, and the representatives are knowledgeable about basic business formation questions that first-time LLC owners commonly have.
What Could Be Better
LegalZoom's pricing has become increasingly complex, with many features that were previously included now offered as paid add-ons or subscription services, making the true total cost significantly higher than the advertised starting price. The operating agreements and contract templates provided are generic and may not adequately address the specific needs of entertainment industry businesses, particularly loan-out companies with unique tax and liability considerations. Upselling is aggressive throughout the formation process, with multiple screens encouraging you to add services you may not need, which can be confusing for first-time business owners. The basic formation package is bare-bones and omits important elements like the operating agreement, effectively pressuring most users into the more expensive tiers. Customer support, while available, can involve long wait times during peak periods and the representatives may lack the specialized entertainment industry knowledge to address actor-specific questions about loan-out company structuring. Many of the services LegalZoom charges for, such as EIN applications and basic state filings, can be completed for free directly through government websites if you are willing to invest the time to learn the process.
Our Recommendation
LegalZoom is recommended for actors who have consulted with an entertainment accountant and determined that forming an LLC or loan-out company is advantageous for their specific tax and liability situation. It is most valuable for actors who want the convenience of a guided process and professional handling of paperwork without the expense of hiring an attorney for basic business formation. If your income from acting is below approximately seventy-five thousand dollars per year, the cost and complexity of maintaining an LLC may outweigh the tax benefits, so consult your accountant before proceeding. Actors who are comfortable with government websites and self-directed research can save money by filing directly with their state and the IRS, bypassing LegalZoom entirely. For complex entertainment industry business structuring involving multiple entities, intellectual property, or production companies, hiring a qualified entertainment attorney is worth the additional expense over a template-based service. LegalZoom works best for straightforward LLC formations where you have already received professional advice on the appropriate business structure.
Pro Tips
Consult with an entertainment accountant or tax professional before forming your LLC to confirm that the entity structure makes financial sense for your specific income level and career situation, as premature LLC formation can create unnecessary costs and administrative burdens. Choose your LLC's state of formation carefully, as some actors form in states like Wyoming or Nevada for favorable tax treatment, but this can create complications if you primarily work and reside in a different state. Decline the add-on services during the checkout process and purchase only what you specifically need, as you can always add registered agent service, compliance packages, and other features later. Keep your LLC's operating agreement in a secure location and review it with your accountant to ensure the tax election and management structure align with your professional goals. Set calendar reminders for all annual compliance deadlines, including state annual reports, franchise tax filings, and registered agent renewals, as missing these deadlines can result in penalties or dissolution of your entity. Use LegalZoom's formation service for the paperwork but establish a relationship with an entertainment attorney for contract reviews, negotiations, and any legal matters that require industry-specific expertise.