getting legit.. whats your company?

[Mark Allen]

In a similar boat...not quite at the 100k mark but hopefully will be there soon. Would anyone here recommend against going S-corp if still earning peanuts (relatively speaking)? Living/operating out of Brooklyn, NY.

I can only speak for California. The 100k is a rough number that comes from just finding the breaking point of financial benefit.

If you incorporate you have some basic fees & taxes and probably additional accounting expenses which lead you to evaluating those ADDITIONS against the savings (from the self employment) and while it's different for everyone and even different each year depending on your business that year - it generally comes out to the break even point is somewhere around 100,000. Maybe it's like 80k for someone one year, maybe 110k for someone else another year - but I think the number is used to basically say "If you're making 20k a year, you're not going to benefit financially. If you're making 250k per year, what are you waiting for?"


By the way, after I formed my corporation, I will say that my clientele options increased in an important moment. It could be just that it was coincidental timing in my favor, but I did have certain clients who simply would not have hired me if I were a DBA - they don't want to fuss with 1099's. That ended up being a big advantage, but I don't think everyone would be in that same boat.

 

[sbroock]

Yeah, I do everything under "section 179" with a 5-year depreciation calculated using the 200% declining balance method.

Section 179 allows (with limitations, but very generous in 2010) a full deduction in the year of purchase.

200% declining balance is different -- it is depreciation over a period of years (as you've described in your case 5).

Opting for all depreciation up front vs over time is totally dependent on your circumstances and current income.

 

[Matt W.]

What do you do for work? I made about $6,000 last year, tops and I'm trying to figure out how to make more next year. Most of my gigs (both cinematography and vfx) have been unpaid so most of that money is from cashiering. Are you part of a union?

 

[Gavin Greenwalt]

I made about $6,000 last year, tops and I'm trying to figure out how to make more next year. Most of my gigs (both cinematography and vfx) have been unpaid...

I think you just answered your own question.

 

[Matt W.]

They weren't unpaid by choice... I've been trying to build up my reels. (And on many of the unpaid gigs I ended up losing a lot of money having to buy food/transportation/repair my gear that was damaged on set.)

I'm serious about this, though. I don't get how people support themselves in this industry.

 

[Jay Gannon]

Your choosing the wrong gigs man, don't go near a set that doesnt offer food and transpo its not worth it. Start shooting corporate, training videos, school promos, anything that pays, build a name as someone who does good work, not someone who does free work. A rep like that can haunt you.
And get yourself a proper website, its the 1st thing people will check, make it as professional looking as you can possibly afford.

 

[Mark Allen]

What do you do for work? I made about $6,000 last year, tops and I'm trying to figure out how to make more next year. Most of my gigs (both cinematography and vfx) have been unpaid so most of that money is from cashiering. Are you part of a union?

VisFX and Production are totally different worlds. The one thing they have in common is that once you get to a point where you can do things reliably and with a solid reputation and at a reasonable price that others cannot, you will have work if you look for it.

For VisFX, if you just need money, start applying for work at various FX studios, they are hiring all the time. Plus, keep an eye on creativecow.net and visfxpro.com ads for work for hire. Check monster.com and other sites for studio work needed. You can build up your reel in a studio and then when you start working freelance again (if ever) your reel will be very strong and it will just be a matter of negotiation. VisFX work is going to be more easy to slip into because there is more of a machne that you can get into and work your way up inside it as you know more skills. BTW, your FX reel is pretty promising - it would help if you had higher production value stuff on it, but I'd look at that reel and consider trying you out freelance (if I were hriing which right now I'm not, but it goes in phases). But that tells me that some other house who hires a lot more than mine would probably feel the same way. Everyone will be tenative until you have larger shows and a reputation for delivering.

For Production work. You have to master what you do and it's like selling a product. Most DP's are working as AC's or gaffers or some other position while they are building up their reels in the off hours (weekends or between shows). I think for your next cinematography piece - especially if unpaid - you really need to make sure it's going to have great production design. Trust me, producers are very unclear between the difference of cinematography and production design. I think you just need one amazing piece - maybe two and then just scrap all the other material that isn't up to it. You'll find you get put to the top of the stack. Just remember - EVERYONE wants their stuff to look expensive and since they don't care about excuses and don't know where that look comes from, you need to just make sure that your stuff all looks expensive in every category.

(BTW, many people are also making their money not doing features and such, but industrials which is a whole different but regular industry.)

Hope this info helps.

 

[Matt W.]

Thanks, that's very helpful and generous advice. Sorry to thread-jack, btw.

I may just need to move out of the insular world I've been shooting in. I was DP for like 95% of the footage on my vfx reel, for instance (and I don't take offense at it being called low-production value--it is). Likewise, the DP reel is 95% hvx and dvx, which can be limiting, but it's for a studio full of good people who put up with a lot from me as a beginner. I'd actually be thrilled to work at a vfx house or as an AC on a good set because I'm self-taught and need some more perspective.

Time to get a website and apartment in LA, I guess. Thanks again, seriously; that's very helpful and encouraging.

 

[Scott Crawley]

Mark,

Killer post.

 

[D Fuller]

my set up?

well.. pay little as possible taxes (mostly state as I dont believe in federal)

"Pay as little taxes as possible" is a goal, not your situation.

By "your set-up" I mean things like: How much equipment do you own that you want/need to depreciate? How much do you intend to buy? How likely is it that you will ever have employees? Are you married, and do you want your spouse to be part of the company? Or not? Do you have any interest in retirement savings?

And again, asking a bunch of film makers for the best structure for you business is -- well, let's just say it's not the smartest thing you've ever done.