Legal Question in Entertainment Law in Massachusetts
Incorporation question for new Radio Show
My friend and I are launching a new radio show in Massachusetts. We purchase the two-hour time slot and sell our own advertising. Do we need to incorporate to protect ourselves? Should we form a partnership? Since we're selling our own advertising, we do have a E.I.N. and a bank account but we wondered if we needed to form a corporation as well. Thank you!
2 Answers from Attorneys
Re: Incorporation question for new Radio Show
While incorporation is not a guarantee against personal liabiity if you commit an act of slander as an individual or get fined by the FTC, it does limit your liabilty if the only one of the two of you does something wrong. What you have is a defacto partnership, so whatever the partnership has a liabilities will go against the partnership and the individuals. There is no limit on your liability.
You have a choice of forming a corporation, LLC or LLP. Each has its benefits and detriments.
If you have more questions, please feel free to contact me.
Re: Incorporation question for new Radio Show
This is definitely a good situation to form an entity to operate the show -- it stops liability from flowing to the owners for things like comments by a guest, contractor or employee of your company. This will not protect you against your own remarks, however.
You should consult with your accountant to ascertain the best kind of entity from a tax standpoint, as the legal protections are substantially identical.
Best wishes,
LDWG
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