Wednesday, March 16, 2011

Film making business

kimbrovideo said...

Dear Accountant,
I am a self-employed filmmaker who rents video gear to production companies. I am set up as a sole-proprietorship. I fill out time cards for the labor on set and I invoice the production company for my gear. Recently, I had a company ask for a local address so they could apply for a statewide tax-incentive program. Well, I live out of the state so I do not have a local address. My parents live in the state. Could I provide their address to this company? The production company would want me to change the address on my invoice too but since the income from the invoice is taxable, is this legal? Could I put the gear rentals on a "kit rental" form attached to my time card? I want to solve this and not lode a valued client.

1 comment:

WebTaxOfficeUSA said...

Dear Reader, thank you for posting your questions on our blog.

Since you are set up as a sole prop, I would advice you that your business is not working in your favor. Now having said that you can carry your business from any where in the USA or as a matter of fact you can be outside of USA and still carry on your business operations. When you have a physical addresses in different states, you need to properly allocate your income and pay taxes accordingly. Its the same way as you have 2 branches of the same business located in 2 different states.

I hope all your questions are cleared. Please feel free to post, if you have any additional questions.

Your Accountant
Web Tax Office Team