{"version":"1.0.0","segments":[{"startTime":2.003,"endTime":4.064,"body":"You're listening to Podcasting Made"},{"startTime":2.003,"endTime":4.064,"body":"Simple."},{"startTime":4.064,"endTime":6.185,"body":"I'm your host, Alex Sanfilippo."},{"startTime":6.185,"endTime":10.748,"body":"For this episode's guide and resources,"},{"startTime":6.185,"endTime":10.748,"body":"please visit podprose.com slash 271."},{"startTime":11.729,"endTime":13.649,"body":"And now let's get to the episode."},{"startTime":15.31,"endTime":21.655,"body":"To LLC or not to LLC, that is the question"},{"startTime":15.31,"endTime":21.655,"body":"every podcaster should be asking."},{"startTime":21.655,"endTime":26.819,"body":"Whether you are podcasting as a business"},{"startTime":21.655,"endTime":26.819,"body":"or consider it a hobby, whether it's just"},{"startTime":26.819,"endTime":31.263,"body":"you or a team effort, whether you're"},{"startTime":26.819,"endTime":31.263,"body":"aiming to make money from your podcast or"},{"startTime":31.263,"endTime":36.488,"body":"just to get a message out and get people"},{"startTime":31.263,"endTime":36.488,"body":"thinking and talking or taking action, it"},{"startTime":36.488,"endTime":39.95,"body":"is important to think about whether you"},{"startTime":36.488,"endTime":39.95,"body":"are in business."},{"startTime":40.031,"endTime":43.558,"body":"Now, for my money, if you're putting out"},{"startTime":40.031,"endTime":43.558,"body":"regular episodes of content,"},{"startTime":43.558,"endTime":45.86,"body":"regardless of your purpose in doing it."},{"startTime":45.86,"endTime":48.081,"body":"You are engaging in commerce."},{"startTime":48.102,"endTime":50.964,"body":"You're doing the kinds of things that"},{"startTime":48.102,"endTime":50.964,"body":"businesses do."},{"startTime":50.964,"endTime":55.589,"body":"And from the legal standpoint, there's a"},{"startTime":50.964,"endTime":55.589,"body":"very good chance that you are going to be"},{"startTime":55.589,"endTime":59.372,"body":"considered a business whether you intend"},{"startTime":55.589,"endTime":59.372,"body":"it to be or not."},{"startTime":59.492,"endTime":62.375,"body":"Hi, I'm Gordon Firemark, the podcast"},{"startTime":59.492,"endTime":62.375,"body":"lawyer."},{"startTime":62.375,"endTime":65.838,"body":"Actually, I'm a media, entertainment and"},{"startTime":62.375,"endTime":65.838,"body":"business lawyer."},{"startTime":65.858,"endTime":69.761,"body":"I've been helping creators across media"},{"startTime":65.858,"endTime":69.761,"body":"and entertainment for my whole career."},{"startTime":69.77,"endTime":73.592,"body":"And my mission is to make sure that you"},{"startTime":69.77,"endTime":73.592,"body":"are able to do your thing, to make your"},{"startTime":73.592,"endTime":79.436,"body":"content, to entertain, educate, inform,"},{"startTime":73.592,"endTime":79.436,"body":"and influence audiences in a way that's"},{"startTime":79.436,"endTime":82.138,"body":"safe and smart and effective."},{"startTime":82.138,"endTime":86.161,"body":"Now, because I'm a lawyer, I do have to"},{"startTime":82.138,"endTime":86.161,"body":"just make a quick disclaimer here."},{"startTime":86.161,"endTime":89.303,"body":"I am a lawyer, but I'm not your lawyer."},{"startTime":89.303,"endTime":93.846,"body":"So I'm providing some general information"},{"startTime":89.303,"endTime":93.846,"body":"that you're going to find useful, I hope."},{"startTime":93.906,"endTime":97.949,"body":"But you shouldn't rely on this as legal"},{"startTime":93.906,"endTime":97.949,"body":"advice from either me or from my hosts"},{"startTime":97.949,"endTime":98.866,"body":"here today."},{"startTime":98.866,"endTime":104.41,"body":"Okay, so as I said, I want you to do your"},{"startTime":98.866,"endTime":104.41,"body":"thing, to make your mark, to influence"},{"startTime":104.41,"endTime":107.953,"body":"audiences and to be safe and protected as"},{"startTime":104.41,"endTime":107.953,"body":"you do so."},{"startTime":107.953,"endTime":113.258,"body":"And one of the most important ways you can"},{"startTime":107.953,"endTime":113.258,"body":"protect yourself is by forming an LLC"},{"startTime":113.258,"endTime":114.839,"body":"around your podcast."},{"startTime":114.839,"endTime":118.843,"body":"Now you might be thinking for yourself"},{"startTime":114.839,"endTime":118.843,"body":"right now, protect myself from what?"},{"startTime":118.843,"endTime":124.368,"body":"Well, let me tell you, some of the most"},{"startTime":118.843,"endTime":124.368,"body":"common risks that I see podcasters taking"},{"startTime":124.368,"endTime":126.902,"body":"don't even feel like risks at the time."},{"startTime":126.902,"endTime":128.162,"body":"You're going to start a podcast, right?"},{"startTime":128.162,"endTime":130.783,"body":"So you grab a friend, you start creating."},{"startTime":130.783,"endTime":132.184,"body":"Well, guess what?"},{"startTime":132.184,"endTime":133.944,"body":"You just got into business together."},{"startTime":134.125,"endTime":136.065,"body":"What happens if things don't work out?"},{"startTime":136.166,"endTime":138.667,"body":"What if someone stops pulling their"},{"startTime":136.166,"endTime":138.667,"body":"weight?"},{"startTime":138.707,"endTime":142.769,"body":"What happens when one of you is putting up"},{"startTime":138.707,"endTime":142.769,"body":"more of the money or does more of the work"},{"startTime":142.769,"endTime":146.47,"body":"and starts to feel resentful about sharing"},{"startTime":142.769,"endTime":146.47,"body":"the rewards equally?"},{"startTime":146.61,"endTime":151.172,"body":"Ownership and management disputes among"},{"startTime":146.61,"endTime":151.172,"body":"podcasters are probably the most common"},{"startTime":151.172,"endTime":152.713,"body":"problems I hear about."},{"startTime":152.713,"endTime":153.554,"body":"And honestly,"},{"startTime":153.554,"endTime":157.235,"body":"Sometimes creators do things that carry"},{"startTime":153.554,"endTime":157.235,"body":"liability."},{"startTime":157.235,"endTime":162.156,"body":"Maybe you use a bit too much of a bit of"},{"startTime":157.235,"endTime":162.156,"body":"music, or you say something about a person"},{"startTime":162.156,"endTime":166.497,"body":"that isn't true and it hurts their"},{"startTime":162.156,"endTime":166.497,"body":"reputation, or your co-host does, or your"},{"startTime":166.497,"endTime":167.517,"body":"guest does."},{"startTime":167.517,"endTime":172.359,"body":"Suddenly now you're in the crosshairs of"},{"startTime":167.517,"endTime":172.359,"body":"nasty demands or even lawsuits that can"},{"startTime":172.359,"endTime":173.619,"body":"cost a fortune."},{"startTime":173.619,"endTime":177.8,"body":"The fact is, making media content is a"},{"startTime":173.619,"endTime":177.8,"body":"risky venture."},{"startTime":177.8,"endTime":181.501,"body":"There is liability that can catch you,"},{"startTime":177.8,"endTime":181.501,"body":"even if you're doing everything by the"},{"startTime":181.501,"endTime":182.134,"body":"book."},{"startTime":182.134,"endTime":186.095,"body":"When you're making media, you're engaging"},{"startTime":182.134,"endTime":186.095,"body":"in something that up until very recently"},{"startTime":186.095,"endTime":190.117,"body":"was an activity that was really something"},{"startTime":186.095,"endTime":190.117,"body":"only big, well-financed companies could"},{"startTime":190.117,"endTime":190.817,"body":"do."},{"startTime":190.857,"endTime":195.659,"body":"And while the playing field now is much"},{"startTime":190.857,"endTime":195.659,"body":"more level, audiences still think of"},{"startTime":195.659,"endTime":199.601,"body":"creators as having vast pools of resources"},{"startTime":195.659,"endTime":199.601,"body":"at our disposal."},{"startTime":199.601,"endTime":203.623,"body":"So when they see something they don't like"},{"startTime":199.601,"endTime":203.623,"body":"or that hurts their feelings, they go into"},{"startTime":203.623,"endTime":208.485,"body":"a get-em mode and they start looking for"},{"startTime":203.623,"endTime":208.485,"body":"ways to get some kind of a payday to"},{"startTime":208.485,"endTime":209.665,"body":"punish you."},{"startTime":209.665,"endTime":210.285,"body":"So"},{"startTime":210.322,"endTime":213.944,"body":"If you're going to be viewed from the"},{"startTime":210.322,"endTime":213.944,"body":"outside as a business, shouldn't you take"},{"startTime":213.944,"endTime":218.207,"body":"steps from the inside to put up the"},{"startTime":213.944,"endTime":218.207,"body":"protections that businesses have?"},{"startTime":218.347,"endTime":222.33,"body":"I'm talking, of course, about forming an"},{"startTime":218.347,"endTime":222.33,"body":"LLC for your venture."},{"startTime":222.35,"endTime":227.393,"body":"Now, I'll be the first to tell you, having"},{"startTime":222.35,"endTime":227.393,"body":"an LLC is not for every podcaster."},{"startTime":227.414,"endTime":231.677,"body":"For example, your business might already"},{"startTime":227.414,"endTime":231.677,"body":"be a corporation or an LLC structure."},{"startTime":231.677,"endTime":236.56,"body":"If the podcast is a marketing initiative"},{"startTime":231.677,"endTime":236.56,"body":"of an existing company, well, no new LLC"},{"startTime":236.56,"endTime":237.401,"body":"is needed."},{"startTime":237.401,"endTime":238.302,"body":"But for most..."},{"startTime":238.302,"endTime":241.744,"body":"it's wise to at least consider"},{"startTime":238.302,"endTime":241.744,"body":"implementing the legal separateness that"},{"startTime":241.744,"endTime":243.525,"body":"the LLC affords."},{"startTime":243.726,"endTime":245.608,"body":"So what is an LLC?"},{"startTime":245.608,"endTime":249.411,"body":"Well, LLC stands for Limited Liability"},{"startTime":245.608,"endTime":249.411,"body":"Company."},{"startTime":249.411,"endTime":251.252,"body":"So there it is, front and center."},{"startTime":251.372,"endTime":256.456,"body":"Limiting the liability of its owners is"},{"startTime":251.372,"endTime":256.456,"body":"one of the key benefits to having an LLC."},{"startTime":256.516,"endTime":261.32,"body":"LLCs are recognized under the law in much"},{"startTime":256.516,"endTime":261.32,"body":"the same way that corporations are."},{"startTime":261.36,"endTime":266.605,"body":"They're treated as a separate legal person"},{"startTime":261.36,"endTime":266.605,"body":"that can have legal rights and incur"},{"startTime":266.605,"endTime":267.825,"body":"liabilities."},{"startTime":267.862,"endTime":273.343,"body":"But like a corporation, the owners of a"},{"startTime":267.862,"endTime":273.343,"body":"properly established and maintained LLC"},{"startTime":273.463,"endTime":276.724,"body":"won't be held to account for the company's"},{"startTime":273.463,"endTime":276.724,"body":"liabilities."},{"startTime":276.924,"endTime":280.805,"body":"So the LLC acts as sort of a shield."},{"startTime":281.305,"endTime":286.667,"body":"An LLC is formed by a relatively simple"},{"startTime":281.305,"endTime":286.667,"body":"filing document called articles."},{"startTime":286.887,"endTime":289.668,"body":"You file it with the government of the"},{"startTime":286.887,"endTime":289.668,"body":"state in which you're forming it, and then"},{"startTime":289.668,"endTime":294.149,"body":"the members, that's what the owners of an"},{"startTime":289.668,"endTime":294.149,"body":"LLC are called, enter into a contract"},{"startTime":294.149,"endTime":296.59,"body":"between and among themselves and the"},{"startTime":294.149,"endTime":296.59,"body":"company."},{"startTime":296.59,"endTime":298.43,"body":"That's the operating agreement."},{"startTime":298.75,"endTime":303.651,"body":"That operating agreement acts like the"},{"startTime":298.75,"endTime":303.651,"body":"bylaws or constitution of the company,"},{"startTime":303.712,"endTime":307.613,"body":"setting out the rules for how the company"},{"startTime":303.712,"endTime":307.613,"body":"is going to be owned and managed, how the"},{"startTime":307.613,"endTime":309.553,"body":"profits and losses will be allocated."},{"startTime":309.553,"endTime":313.894,"body":"And it sets forth answers to lots of the"},{"startTime":309.553,"endTime":313.894,"body":"what if questions."},{"startTime":313.915,"endTime":315.975,"body":"What if we want to bring in new members?"},{"startTime":315.975,"endTime":317.836,"body":"Or what if someone wants to leave?"},{"startTime":317.836,"endTime":320.657,"body":"What happens if someone becomes disabled"},{"startTime":317.836,"endTime":320.657,"body":"or dies?"},{"startTime":320.657,"endTime":323.997,"body":"What happens if we decide to sell the"},{"startTime":320.657,"endTime":323.997,"body":"company or just to close it off?"},{"startTime":324.438,"endTime":328.859,"body":"So you can see the LLC does more than just"},{"startTime":324.438,"endTime":328.859,"body":"protect owners from liability."},{"startTime":328.859,"endTime":331.18,"body":"It provides an ownership structure."},{"startTime":331.18,"endTime":335.682,"body":"You know, I talk a lot about what I call a"},{"startTime":331.18,"endTime":335.682,"body":"podcast prenup, a document or structure"},{"startTime":335.682,"endTime":337.783,"body":"that handles those what if questions."},{"startTime":337.783,"endTime":342.626,"body":"So everyone knows what's supposed to"},{"startTime":337.783,"endTime":342.626,"body":"happen if these various things happen."},{"startTime":342.626,"endTime":346.427,"body":"The LLC and its operating agreement can be"},{"startTime":342.626,"endTime":346.427,"body":"that structure."},{"startTime":346.427,"endTime":349.308,"body":"And LLC also provides a survivability."},{"startTime":349.308,"endTime":352.049,"body":"Since it's a separate person under the"},{"startTime":349.308,"endTime":352.049,"body":"law."},{"startTime":352.514,"endTime":357.375,"body":"the company can continue operating, it can"},{"startTime":352.514,"endTime":357.375,"body":"stay alive after one of the owners leaves"},{"startTime":357.375,"endTime":358.475,"body":"or dies."},{"startTime":358.695,"endTime":362.156,"body":"And I'll tell you, that is not what"},{"startTime":358.695,"endTime":362.156,"body":"happens when there's a sole proprietor or"},{"startTime":362.156,"endTime":363.717,"body":"a partnership."},{"startTime":363.717,"endTime":366.917,"body":"The LLC can also take on the role of the"},{"startTime":363.717,"endTime":366.917,"body":"employer."},{"startTime":366.917,"endTime":371.419,"body":"Again, separating the owners from the"},{"startTime":366.917,"endTime":371.419,"body":"risks and liabilities that having"},{"startTime":371.419,"endTime":376.08,"body":"employees can entail, and it can set up"},{"startTime":371.419,"endTime":376.08,"body":"pension plans and benefits programs and"},{"startTime":376.08,"endTime":377.68,"body":"all those kinds of things as well."},{"startTime":377.68,"endTime":381.741,"body":"And all of the people who work in an LLC,"},{"startTime":377.68,"endTime":381.741,"body":"whether they're members of the company or"},{"startTime":381.741,"endTime":382.521,"body":"not,"},{"startTime":382.866,"endTime":386.869,"body":"independent contractors and employees,"},{"startTime":382.866,"endTime":386.869,"body":"whatever, they should all be signed to"},{"startTime":386.869,"endTime":390.111,"body":"contracts outlining their job"},{"startTime":386.869,"endTime":390.111,"body":"responsibilities, their rights,"},{"startTime":390.111,"endTime":394.855,"body":"compensation, benefits, and the contracts"},{"startTime":390.111,"endTime":394.855,"body":"should make it very clear that what they"},{"startTime":394.855,"endTime":397.456,"body":"create belongs to the company."},{"startTime":397.837,"endTime":400.839,"body":"Next, the LLC could offer tax advantages."},{"startTime":400.999,"endTime":405.262,"body":"Now, I'll just say another little"},{"startTime":400.999,"endTime":405.262,"body":"disclaimer, I am not a tax expert at all."},{"startTime":405.583,"endTime":409.145,"body":"So you will definitely want to talk this"},{"startTime":405.583,"endTime":409.145,"body":"over with your accountant or tax advisor,"},{"startTime":409.145,"endTime":409.765,"body":"but"},{"startTime":410.254,"endTime":415.577,"body":"LLCs and corporations can take deductions"},{"startTime":410.254,"endTime":415.577,"body":"as business expenses for some of the kinds"},{"startTime":415.577,"endTime":418.059,"body":"of things that an individual taxpayer"},{"startTime":415.577,"endTime":418.059,"body":"can't."},{"startTime":418.059,"endTime":419.56,"body":"So it's worth exploring."},{"startTime":420.281,"endTime":426.165,"body":"And although it isn't probably an issue"},{"startTime":420.281,"endTime":426.165,"body":"for most podcasters, an LLC can also"},{"startTime":426.165,"endTime":431.569,"body":"provide a way to finance operations, to"},{"startTime":426.165,"endTime":431.569,"body":"raise capital by selling equity interests,"},{"startTime":431.569,"endTime":434.27,"body":"shares, membership interests to investors."},{"startTime":434.451,"endTime":439.113,"body":"And ultimately, an LLC projects a kind of"},{"startTime":434.451,"endTime":439.113,"body":"stability and longevity."},{"startTime":439.206,"endTime":442.928,"body":"Essentially, it gives your podcast some"},{"startTime":439.206,"endTime":442.928,"body":"additional street cred with vendors,"},{"startTime":442.928,"endTime":444.889,"body":"guests, audiences, sponsors."},{"startTime":444.99,"endTime":447.572,"body":"People like to do business with companies."},{"startTime":447.572,"endTime":451.895,"body":"They feel more secure with the perception"},{"startTime":447.572,"endTime":451.895,"body":"that the people behind it are more"},{"startTime":451.895,"endTime":455.397,"body":"serious, more professional, and just more"},{"startTime":451.895,"endTime":455.397,"body":"businesslike."},{"startTime":455.397,"endTime":459.54,"body":"So, why might you not want to form an LLC"},{"startTime":455.397,"endTime":459.54,"body":"for your podcast?"},{"startTime":459.54,"endTime":461.681,"body":"Well, first, of course, is the cost."},{"startTime":461.681,"endTime":466.304,"body":"Forming an LLC is going to cost some"},{"startTime":461.681,"endTime":466.304,"body":"money, but maybe not as much as you fear."},{"startTime":466.505,"endTime":467.518,"body":"In some states,"},{"startTime":467.518,"endTime":471.841,"body":"It could be under $100 in government fees"},{"startTime":467.518,"endTime":471.841,"body":"and even less on a year-to-year basis"},{"startTime":471.841,"endTime":472.702,"body":"after that."},{"startTime":472.702,"endTime":477.286,"body":"But in others it can be several hundreds"},{"startTime":472.702,"endTime":477.286,"body":"or even approaching $1,000 a year."},{"startTime":477.286,"endTime":479.188,"body":"And then there's the hassle factor."},{"startTime":479.188,"endTime":483.791,"body":"Having an LLC and that terrific"},{"startTime":479.188,"endTime":483.791,"body":"separateness I spoke of also means that"},{"startTime":483.791,"endTime":486.633,"body":"you've got more administrative stuff to"},{"startTime":483.791,"endTime":486.633,"body":"handle."},{"startTime":486.694,"endTime":491.198,"body":"It's not by any means a big hassle, but"},{"startTime":486.694,"endTime":491.198,"body":"there are some government filings,"},{"startTime":491.198,"endTime":495.381,"body":"record-keeping and reporting that do take"},{"startTime":491.198,"endTime":495.381,"body":"a little time and energy."},{"startTime":495.381,"endTime":495.85,"body":"Or..."},{"startTime":495.85,"endTime":498.532,"body":"You may not want people to see a company"},{"startTime":495.85,"endTime":498.532,"body":"in the mix."},{"startTime":498.532,"endTime":503.015,"body":"If you're a very personal brand, you might"},{"startTime":498.532,"endTime":503.015,"body":"find that people prefer to deal directly"},{"startTime":503.015,"endTime":506.078,"body":"with you and not with your company."},{"startTime":506.078,"endTime":510.561,"body":"But that's rare, and when it is an issue,"},{"startTime":506.078,"endTime":510.561,"body":"there are ways to deal with this."},{"startTime":510.641,"endTime":514.104,"body":"In fact, a lot of celebrities use"},{"startTime":510.641,"endTime":514.104,"body":"companies whenever they do business."},{"startTime":514.164,"endTime":518.007,"body":"And if an LLC doesn't seem like the right"},{"startTime":514.164,"endTime":518.007,"body":"fit for your podcast, there are"},{"startTime":518.007,"endTime":520.089,"body":"alternatives that offer some of the same"},{"startTime":518.007,"endTime":520.089,"body":"benefits."},{"startTime":520.089,"endTime":521.049,"body":"For example,"},{"startTime":521.11,"endTime":525.411,"body":"getting a good set of insurance policies"},{"startTime":521.11,"endTime":525.411,"body":"in place can be a substitute for the LLC"},{"startTime":525.411,"endTime":526.612,"body":"liability shield."},{"startTime":526.612,"endTime":531.814,"body":"In fact, I often recommend both an LLC and"},{"startTime":526.612,"endTime":531.814,"body":"insurance for clients that can manage it"},{"startTime":531.814,"endTime":534.635,"body":"as a sort of belt and suspenders approach"},{"startTime":531.814,"endTime":534.635,"body":"to this."},{"startTime":534.635,"endTime":537.957,"body":"And you can use contracts with your"},{"startTime":534.635,"endTime":537.957,"body":"partners, co-producers, co-hosts, and"},{"startTime":537.957,"endTime":540.918,"body":"others, even your guests who work on the"},{"startTime":537.957,"endTime":540.918,"body":"show with you."},{"startTime":540.918,"endTime":545.299,"body":"And those deals can establish who's in"},{"startTime":540.918,"endTime":545.299,"body":"charge, who gets what, and so on."},{"startTime":545.34,"endTime":549.581,"body":"But I've just got to say, I think forming"},{"startTime":545.34,"endTime":549.581,"body":"an LLC is the better decision for most"},{"startTime":549.581,"endTime":550.381,"body":"folks."},{"startTime":550.562,"endTime":553.543,"body":"The benefits over time will certainly"},{"startTime":550.562,"endTime":553.543,"body":"outweigh the costs."},{"startTime":553.543,"endTime":557.105,"body":"And if you're serious about podcasting, if"},{"startTime":553.543,"endTime":557.105,"body":"you want to be perceived as a"},{"startTime":557.105,"endTime":560.807,"body":"professional, having that business entity"},{"startTime":557.105,"endTime":560.807,"body":"in place just makes sense."},{"startTime":560.807,"endTime":565.21,"body":"So if I've got you thinking that an LLC is"},{"startTime":560.807,"endTime":565.21,"body":"the right answer for your podcast, what"},{"startTime":565.21,"endTime":566.591,"body":"are you going to do to make it happen?"},{"startTime":566.591,"endTime":569.712,"body":"Well, the steps are pretty"},{"startTime":566.591,"endTime":569.712,"body":"straightforward."},{"startTime":569.953,"endTime":573.614,"body":"First, you have to figure out in what"},{"startTime":569.953,"endTime":573.614,"body":"state the company will be located."},{"startTime":573.975,"endTime":577.337,"body":"Now, some states really sort of roll out"},{"startTime":573.975,"endTime":577.337,"body":"the red carpet for new business entities,"},{"startTime":577.337,"endTime":578.942,"body":"and you might find that."},{"startTime":578.942,"endTime":582.844,"body":"it's more advantageous to form someplace"},{"startTime":578.942,"endTime":582.844,"body":"other than your home state."},{"startTime":583.064,"endTime":587.848,"body":"But do beware because in many instances"},{"startTime":583.064,"endTime":587.848,"body":"you'll still have to register at home and"},{"startTime":587.848,"endTime":589.329,"body":"pay taxes there and so on."},{"startTime":589.329,"endTime":592.571,"body":"So the cost savings may be illusory."},{"startTime":592.591,"endTime":596.454,"body":"Next, prepare and file articles of"},{"startTime":592.591,"endTime":596.454,"body":"organization with the state that you've"},{"startTime":596.454,"endTime":597.374,"body":"selected."},{"startTime":597.755,"endTime":602.378,"body":"And then draft an operating agreement that"},{"startTime":597.755,"endTime":602.378,"body":"clearly defines how the company will be"},{"startTime":602.378,"endTime":606.921,"body":"managed, a framework for decision-making"},{"startTime":602.378,"endTime":606.921,"body":"processes, how profits will be distributed"},{"startTime":606.921,"endTime":607.734,"body":"and other"},{"startTime":607.734,"endTime":611.234,"body":"key aspects of your operational plan for"},{"startTime":607.734,"endTime":611.234,"body":"the business."},{"startTime":611.334,"endTime":615.116,"body":"You'll also need to write up some minutes"},{"startTime":611.334,"endTime":615.116,"body":"of your first meeting of members."},{"startTime":615.116,"endTime":618.977,"body":"I put that in air quotes because if it's"},{"startTime":615.116,"endTime":618.977,"body":"just one person in the LLC, or if"},{"startTime":618.977,"endTime":623.298,"body":"everybody's in agreement, you can do"},{"startTime":618.977,"endTime":623.298,"body":"everything in a written consent document."},{"startTime":623.538,"endTime":628.599,"body":"You'll need to issue membership"},{"startTime":623.538,"endTime":628.599,"body":"certificates, get a federal tax ID number"},{"startTime":628.779,"endTime":631.34,"body":"and open the company's bank accounts."},{"startTime":631.54,"endTime":633.881,"body":"And then you're ready to start operations."},{"startTime":633.941,"endTime":637.134,"body":"Now I know this actually sounds sort of"},{"startTime":633.941,"endTime":637.134,"body":"complex, but it's"},{"startTime":637.134,"endTime":638.254,"body":"But not really."},{"startTime":638.254,"endTime":641.016,"body":"The truth is, it's actually pretty quick."},{"startTime":641.016,"endTime":644.398,"body":"Other than waiting for the government"},{"startTime":641.016,"endTime":644.398,"body":"offices to do their part, which can"},{"startTime":644.398,"endTime":647.961,"body":"sometimes take a few weeks, even though"},{"startTime":644.398,"endTime":647.961,"body":"it's really just stamping a form and"},{"startTime":647.961,"endTime":652.364,"body":"entering data into their systems, the rest"},{"startTime":647.961,"endTime":652.364,"body":"of the process can usually be handled in"},{"startTime":652.364,"endTime":653.944,"body":"just a day or two."},{"startTime":653.945,"endTime":657.887,"body":"But you will probably want to engage a"},{"startTime":653.945,"endTime":657.887,"body":"lawyer to help you with all this."},{"startTime":657.987,"endTime":659.948,"body":"It doesn't need the cost of fortune."},{"startTime":659.949,"endTime":661.25,"body":"Most of us will set a..."},{"startTime":661.25,"endTime":666.192,"body":"very reasonable flat fee, and the benefit"},{"startTime":661.25,"endTime":666.192,"body":"is that you get basically a turnkey LLC"},{"startTime":666.192,"endTime":668.313,"body":"with all the documents prepared for you."},{"startTime":668.313,"endTime":672.435,"body":"You just sign a few things, mail them out,"},{"startTime":668.313,"endTime":672.435,"body":"and you are good to go."},{"startTime":672.496,"endTime":676.798,"body":"Now, I also know there are services out"},{"startTime":672.496,"endTime":676.798,"body":"there, online businesses that say they can"},{"startTime":676.798,"endTime":681.38,"body":"help you file and form your LLC for just a"},{"startTime":676.798,"endTime":681.38,"body":"fraction of the cost of using a lawyer."},{"startTime":681.48,"endTime":683.582,"body":"I actually have very mixed feelings about"},{"startTime":681.48,"endTime":683.582,"body":"these."},{"startTime":683.582,"endTime":686.323,"body":"Now, obviously, I'm a lawyer, and here's"},{"startTime":683.582,"endTime":686.323,"body":"the thing."},{"startTime":686.323,"endTime":690.962,"body":"I get lots of clients who come to me after"},{"startTime":686.323,"endTime":690.962,"body":"one of these rapid zoom, fast services."},{"startTime":690.962,"endTime":695.683,"body":"messes their LLC up and they need to fix"},{"startTime":690.962,"endTime":695.683,"body":"things or they didn't get all the"},{"startTime":695.683,"endTime":698.944,"body":"documents they need so they still have to"},{"startTime":695.683,"endTime":698.944,"body":"hire a lawyer."},{"startTime":699.144,"endTime":703.285,"body":"I think these outfits are a little like"},{"startTime":699.144,"endTime":703.285,"body":"vending machines but your business isn't a"},{"startTime":703.285,"endTime":704.365,"body":"candy bar."},{"startTime":704.385,"endTime":707.666,"body":"Would you get a haircut or a medical"},{"startTime":704.385,"endTime":707.666,"body":"procedure done by a vending machine?"},{"startTime":707.726,"endTime":712.548,"body":"Imagine that a machine with a big hole"},{"startTime":707.726,"endTime":712.548,"body":"that says haircuts $1 insert head here."},{"startTime":713.108,"endTime":715.008,"body":"Would you stick your noggin in there?"},{"startTime":715.068,"endTime":719.338,"body":"You might get a great haircut if your head"},{"startTime":715.068,"endTime":719.338,"body":"and your hair are perfectly average but"},{"startTime":719.338,"endTime":721.258,"body":"You could also wind up missing an ear."},{"startTime":721.759,"endTime":724.5,"body":"So at least reach out and consult a"},{"startTime":721.759,"endTime":724.5,"body":"lawyer."},{"startTime":724.5,"endTime":728.122,"body":"Most of us will do that for free and we"},{"startTime":724.5,"endTime":728.122,"body":"can lay out our recommendations and the"},{"startTime":728.122,"endTime":731.143,"body":"costs so you know what you're getting"},{"startTime":728.122,"endTime":731.143,"body":"into."},{"startTime":731.143,"endTime":735.945,"body":"Anyway, after the LLC is established,"},{"startTime":731.143,"endTime":735.945,"body":"there are a few other small tasks that"},{"startTime":735.945,"endTime":737.266,"body":"need to be handled."},{"startTime":737.266,"endTime":741.868,"body":"Any pre-existing assets of the venture,"},{"startTime":737.266,"endTime":741.868,"body":"like existing podcast episodes, a"},{"startTime":741.868,"endTime":745.849,"body":"trademark title, contracts with sponsors"},{"startTime":741.868,"endTime":745.849,"body":"or vendors."},{"startTime":745.982,"endTime":749.484,"body":"All of those things need to be transferred"},{"startTime":745.982,"endTime":749.484,"body":"into the company and accounts need to be"},{"startTime":749.484,"endTime":753.087,"body":"made changed over to the company name and"},{"startTime":749.484,"endTime":753.087,"body":"those kinds of things."},{"startTime":753.087,"endTime":756.39,"body":"You also need to sign employment and"},{"startTime":753.087,"endTime":756.39,"body":"independent contractor agreements with all"},{"startTime":756.39,"endTime":757.591,"body":"the personnel."},{"startTime":758.091,"endTime":762.035,"body":"And you'll need to keep good records of"},{"startTime":758.091,"endTime":762.035,"body":"your business's revenues, expenses, and"},{"startTime":762.035,"endTime":767.579,"body":"profits, decision-making, relationships"},{"startTime":762.035,"endTime":767.579,"body":"with vendors, client sponsors, and so on."},{"startTime":767.619,"endTime":772.964,"body":"So to recap, forming a limited liability"},{"startTime":767.619,"endTime":772.964,"body":"company can offer liability protection,"},{"startTime":772.964,"endTime":775.542,"body":"flexible management and financial"},{"startTime":772.964,"endTime":775.542,"body":"structures."},{"startTime":775.542,"endTime":779.903,"body":"potential tax benefits, and it lends"},{"startTime":775.542,"endTime":779.903,"body":"credibility to your podcast."},{"startTime":779.943,"endTime":781.423,"body":"But it does come at some cost."},{"startTime":781.423,"endTime":785.164,"body":"It requires a little effort to maintain,"},{"startTime":781.423,"endTime":785.164,"body":"and it may not be entirely congruent with"},{"startTime":785.164,"endTime":786.665,"body":"the image you want to portray."},{"startTime":786.665,"endTime":791.526,"body":"Alternatives like insurance and strong"},{"startTime":786.665,"endTime":791.526,"body":"contracts could be viable options if an"},{"startTime":791.526,"endTime":793.426,"body":"LLC really isn't the right fit for you."},{"startTime":793.426,"endTime":798.688,"body":"But this decision, whether to form an LLC,"},{"startTime":793.426,"endTime":798.688,"body":"is really a critical one, and it really"},{"startTime":798.688,"endTime":802.029,"body":"does depend on your particular needs and"},{"startTime":798.688,"endTime":802.029,"body":"aspirations."},{"startTime":802.029,"endTime":802.929,"body":"So take a moment."},{"startTime":802.929,"endTime":805.209,"body":"Reflect on your goals and objectives."},{"startTime":805.23,"endTime":810.033,"body":"consider the potential upside and the"},{"startTime":805.23,"endTime":810.033,"body":"risks of not creating a business entity,"},{"startTime":810.033,"endTime":811.674,"body":"and figure out a game plan."},{"startTime":812.054,"endTime":815.977,"body":"Oh, and it's often a good idea to start"},{"startTime":812.054,"endTime":815.977,"body":"your LLC right at the beginning of a"},{"startTime":815.977,"endTime":817.899,"body":"calendar year or calendar quarter."},{"startTime":817.899,"endTime":821.161,"body":"That just keeps the bookkeeping and"},{"startTime":817.899,"endTime":821.161,"body":"accounting a bit simpler."},{"startTime":821.161,"endTime":825.324,"body":"And please, do consult a lawyer and your"},{"startTime":821.161,"endTime":825.324,"body":"tax advisor about this."},{"startTime":825.404,"endTime":829.167,"body":"Just because you can do something yourself"},{"startTime":825.404,"endTime":829.167,"body":"doesn't mean you should."},{"startTime":829.167,"endTime":833.198,"body":"So there you have a survey of the"},{"startTime":829.167,"endTime":833.198,"body":"landscape of LLCs."},{"startTime":833.198,"endTime":838.199,"body":"from understanding what an LLC is to the"},{"startTime":833.198,"endTime":838.199,"body":"roles within an LLC and the reasons for"},{"startTime":838.199,"endTime":840.539,"body":"and against forming one for your podcast."},{"startTime":840.56,"endTime":845.041,"body":"We've also discussed the steps you take to"},{"startTime":840.56,"endTime":845.041,"body":"form one and the various things you need"},{"startTime":845.041,"endTime":847.342,"body":"to consider once it's established."},{"startTime":847.342,"endTime":850.202,"body":"I'm Gordon Firemark, the podcast lawyer,"},{"startTime":847.342,"endTime":850.202,"body":"and I just wanna leave you with this"},{"startTime":850.202,"endTime":850.783,"body":"thought."},{"startTime":850.783,"endTime":854.924,"body":"Remember, the best investment you can make"},{"startTime":850.783,"endTime":854.924,"body":"for your podcast is to lay a strong"},{"startTime":854.924,"endTime":856.324,"body":"foundation for it."},{"startTime":856.444,"endTime":860.485,"body":"And always keep in mind, in the world of"},{"startTime":856.444,"endTime":860.485,"body":"podcasting, it's not just about making"},{"startTime":860.485,"endTime":861.482,"body":"some noise."},{"startTime":861.482,"endTime":863.802,"body":"It's about making the right kind of noise."},{"startTime":863.802,"endTime":868.163,"body":"And sometimes that means taking big, bold"},{"startTime":863.802,"endTime":868.163,"body":"actions and calculated risks."},{"startTime":868.423,"endTime":872.064,"body":"And having an LLC for your podcast can"},{"startTime":868.423,"endTime":872.064,"body":"just make that easier since, you know,"},{"startTime":872.064,"endTime":874.865,"body":"you've got some structure and protection"},{"startTime":872.064,"endTime":874.865,"body":"in place."},{"startTime":875.045,"endTime":876.165,"body":"Thanks for being here."},{"startTime":877.086,"endTime":881.547,"body":"If you enjoyed this episode, please visit"},{"startTime":877.086,"endTime":881.547,"body":"podprose.com slash two seven one."},{"startTime":881.547,"endTime":885.488,"body":"Then share the link with one person that"},{"startTime":881.547,"endTime":885.488,"body":"you believe it would add value to until"},{"startTime":885.488,"endTime":886.028,"body":"next time."},{"startTime":886.028,"endTime":887.348,"body":"Thank you for listening."}]}