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inquisitive
01-03-2005, 04:40 PM
Quick question

What did you guys decided to do when you started working on creating animations and/or production of videos.

Did you start a business under your name?
Did you file for a ficticious name?

I am currently doing this as a hobbie, but plan to start working on this part time until I can make the transition fulltime and wonder what approach to take.

Any info / suggestions you can provide will be appreciated.

KPS
01-04-2005, 10:20 AM
I think that the best way to go is by Incorporating a company.
It is not that difficult and it's not expensive. The reason I suggests you to incorporate is that you are protected. the corporation acts as it's own entity.
What this means is that if for any reason one of your clients are unhappy and decides to sue you they cannot go after anything that you personally own. There are a lot of info on incorporating on the Net.
I live in florida and we have a site "www.myflorida.com" that have a lot of info on ficticious names and incorporating.

the url is: http://taxonomy.myflorida.com/Taxonomy/Business/Starting%20a%20Business%20in%20Florida

Each state have different laws so I recommend looking up info for your state.
If you decide to incorporate make sure that you form a "S" corp it's a lot cheaper come tax time.

Talk to an accountant about incorporating your company. I found that an accountant was very helpful in setting up my corporation and doing my taxes.

hope this helps.

Jeff

Ivan
01-04-2005, 10:42 AM
I would suggest that if you are thinking of going into business, take a business course at a local college. It does not have to be a degree related course and often there are evening classes on what you need to do to start a business. It is much more than filing papers with the state unless you intend to just do this as a paying hobby.

If there is a SCORE chapter (Service Core Of Retired Executives) in your area, talk to them, do a Google search for SCORE and your city. Write a business plan. Consider whether an S Corp or an LLC would be better, there are big differnces in how you can grow with either.

If partnering with someone create an exit stratagy before you do anything, you will be glad you did. Each partner should hire an Attorney to do this before you start or you will each be hiring one in five years when you can't stand eachother and that will cost more.

If you want it to be a business you must treat it like a business including keeping business funds seprate from personal funds or clients will be able to pierce the corporate veil and still come after your assets.

Hire an Attorney, look for one that works with small businesses. Many will help set up the company for a set fee which can sometimes be negotiated and they can recommend Accountants who work with your type of business.

If this sounds like a lot of work, it is. Most small businesses fail. Read a book called The E Myth Revisited it is a very good read if you are interested in starting a business.

Good luck.

Ivan

inquisitive
01-05-2005, 01:19 AM
Thank you very much for the information provided.
I enjoy my day job but it does not nurture my creativity they way vt4/lw8 do when i work with the tools.