Why Every Actor Needs a Loan-Out Company?
Jun 24, 2025
Why Every Actor Needs a Loan-Out Company?
You don’t just need to get paid as an actor—you need to get paid like a business.
That’s where a loan-out company comes in.
It’s one of the most overlooked financial tools for working actors—and it could be the key to keeping more of your money, unlocking better write-offs, and building a sustainable career.
This post is a sneak peek into the Actor Financial Toolkit—our new $27 resource built to help you finally understand money, taxes, write-offs, and running your acting career like a real business.
What Is a Loan-Out Company?
A loan-out company is a business entity (typically an LLC or S-Corp) that you set up to get paid through.
Instead of getting a check made out to you personally, a production or client pays your company.
Then, your company pays you—on payroll.
It may sound corporate, but it’s how many professional actors operate once they start booking at higher levels. It’s cleaner, safer, and smarter.
Why It Matters (and What You’re Missing Without It)
When you work under your personal name, you’re limited in what you can write off—and you’re taxed like an employee.
When you work through a business entity, everything changes.
More Tax Deductions
You can deduct coaching, classes, equipment, studio rentals, portions of your rent, travel, software, headshots, meals, and more.
More Financial Protection
Keeping your acting income separate from your personal account protects you from legal and financial risks.
More Control
You choose how and when you pay yourself, which gives you flexibility in managing cash flow and taxes.
More Credibility
Working through a business puts you on the radar of studios, agencies, and industry professionals who expect to pay companies—not individuals.
What About California?
In states like California, there have been important updates.
You can’t simply set up an LLC and expect to be paid as a business anymore.
You need to elect S-Corp status with the IRS and receive formal approval.
If you want to be paid as a loan-out, you must submit documentation proving that you’re operating as a legitimate business. Otherwise, the production will treat you like a W-2 employee and withhold taxes upfront.
Other states are more flexible, but California sets the tone for much of the entertainment industry, so it’s wise to follow these steps no matter where you live.
When Should You Start a Loan-Out?
It depends on where you are in your career, but here’s a strong starting point:
If you’re earning more than $10,000 to $15,000 per year from acting, it’s time to talk to a CPA about setting up a formal business entity.
This is a milestone move that signals you’re serious about your craft and your career.
Final Thoughts
You are not just an artist—you are a business.
And if you want to grow that business, you need the right structure behind it.
A loan-out company helps you:
- Keep more of your money
- Protect your finances
- Operate like a professional
- Build long-term financial health
Want the full breakdown?
Download the TWAA Actor Financial Toolkit for $9.97.
You’ll get:
- A full explanation of loan-out options
- A detailed write-off checklist
- A monthly income and expense tracker
- Tax prep guidance
- Fillable, actor-specific templates
Get the knowledge and the tools to finally take control of your finances—and your future.