Question

I want to start a company that produces documentary films. I have $10,000.00 that I can use to start the business, i don't own a home and I have no other significant assets. I have a friend who wants to be my partner. She has no money, but she's a creative genius.   I live in NYC and she lives in Casey Illinois. The way this industry works is pretty much like this: free-lance producers like us come up with an idea, pitch it to money people, produce the film and sell the rights to the film to a major network (like History Channel or A&E or ABC etc.).
1. What business form should I use to start my company and why?
2. What are the issues you can see that I will have to deal with or that I should be thinking about?

Answer 1

Considering the Scenario you should can form a Limited Liability company (LLC).
An LLC is a common business entity that may be owned and managed by one or more persons who have limited liability for the contractual obligations.These are not complex to set up and easier to operate unlike a partnership. LLC’s are limited liability with flexibility and fewer compliance issues.
The owners here are not shareholders or partners rather they are called “members”.
Below are the few pointers to be taken care of -
1. Selecting a State to formulate the LLC
As every state has different rules and Laws, its always beneficial to opt the state keeping future goals in mind. Also it will help in saving money and future complexities,LLC could be registered in several states together as well if required.
2. Opting for a suitable Name
To start with the brainstorming a few ideal names.It should be original, meaningful, distinctive and most importantly making sure you donot choose the certain names or words which are prohibited in a particular state.
3. Articles of organiztion
Outlining the initial statements required, state the purpose of the LLC. these are short and quick to complete.it legally creates the LLC as a registered business entity within the state.