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You are here: Experts > People/Relationships > Adult Film > Adult Film > check or cash
Expert: Dan Pepper - 10/6/2008
Question
hey dan, listen how does a adult company pay the actors? cash or company check, or does the company need to start a pay roll? im not sure, and is it best to start a llc or corparation when your business is adult entertainment?
Answer
Jamel,
Your company should always pay by check, so you can ensure that appropriate taxes are paid, and there is a paper trail for auditing and bookkeeping purposes.
Most talent for start-up adult businesses are paid on a contractor basis, which means the talent is responsible for any payroll taxes, not the business. However, in certain cases and jurisdictions, the business is responsible for paying workers' compensation insurance on behalf of the talent.
Whether to form a LLC or a corporation can depend on many factors, like the number of owners of your business, if you plan on raising capital from third parties, how you want to pay yourself, and your individual tax situation. You may want to check out my DVD, which answers these questions, and much much more about starting any online business. Info on that can be found at my website - www.adultwebsitelawyer.com.
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