Creating a voice-over business is exciting. In the whirlwind of developing your vocal technique, recording your demo, setting up your home studio, creating your brand and launching your website, it’s all too easy to put off some of the less glamorous, more administrative aspects of running a business. Operating a small business is also about planning, making informed decisions and completing a series of legal steps. The more you know about the legal aspects of starting a business, the more skills you have to create a plan that develops into a lasting source of income and satisfaction.
Here are five legal aspects you need to consider for your voice-over business:
Choose A Business Name
The name you choose will say a lot about your business, but there is more to picking one than being creative. It has to be legally available. To make sure that someone else doesn’t own it, check online at the U.S. Patent & Trademark Office. Also do a comprehensive search into all state and local databases.
In addition to selecting your business name, you may need to register a fictitious business name, known as a DBA (Doing Business As). A DBA is needed when your company’s name is different from your own name.
Register Your Business
Decide which business structure is best for you: a sole proprietorship, a Limited Liability Company (LLC), a S corporation or a C corporation. Your business structure will determine your personal liability and will determine which income tax form you will file. According to Robert Sciglimpaglia, a practicing lawyer, as well as an accomplished actor and voice talent, “The reason to form an LLC or corporation is to protect the personal assets that you have from any liabilities of the company.”
Depending on your individual legal and tax circumstances, each business structure has its own advantages and disadvantages. Rob states, “It is good to speak with a tax accountant and/or an entertainment attorney early in the game to determine which structure is right for you.”
You can register your chosen business structure and business name online at your Secretary of State’s website.
Open a business bank account
As Rob says, “Keep everything separate!” Whatever business structure you decide on, keep your business funds separate from your personal accounts. It is really easy to set up a business checking account and business credit card with your local credit union or bank.
Also, create a separate record keeping system for your business income/expenses vs. your personal income/expenses. When it comes to tax deductions for your business, Rob suggests, “Go to irs.gov and type in ‘Start-up Costs’ to see what you can deduct as start-up costs once you are a legitimate business.” He also suggests looking at a Schedule C to determine the categories for the deductions you can claim for your business. This will make it easier to file your income taxes at the end of the year.
Get Everything in Writing!
“Don’t be afraid to ask your clients to sign a contract clarifying the terms and conditions for the job. People who are professional and understand this business will sign it. And contracts can be signed electronically in seconds,” states Rob. At the very least, both you and the client should agree to all terms and conditions via email exchanges. Be sure to specify the essential terms of; the amount, the medium, the market, the length of the script, the revision policy, the deadline, the delivery method and the usage. “Protect how your work gets used. Be aware of non-broadcast jobs being broadcast! Watch out for ‘Buy-outs’ and ‘In perpetuity.’ Even consider putting a time limit on the use of non-broadcast projects,” says Rob.
Act Professionally on Social Media
Having an internet footprint and online presence is important for promoting your business and attracting clients. However, you need to act responsibly and professionally. Rob’s advice? “It’s simple. To avoid any trouble or liability… get permission from your client. Period. If you don’t have permission from your client, don’t post it! Companies are getting more protective of their intellectual property.” He suggests staying away from posting religious views, political views or any negative comments.
Starting a business can be both exciting and stressful. As you continue to develop every aspect of your voice-over career, set aside the time to fully understand your business and legal obligations. With knowledgeable planning and legal guidance, the process might actually be fun.
To learn more about Robert J. Sciglimpaglia Jr. visit his website, or purchase his book, “Voice Over LEGAL,” at voiceoverlegal.com.
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Joleene Derks is a Marketing and Career Advisory Coach with Such A Voice. She has been a full-time voice actor and on-camera talent since 2010. She voices radio and television commercials, corporate training videos, eLearning modules and long form narration. You can find her on LinkedIn or at joleenederks.com.
