What is a loan out company?
A loan-out company is just a fancy name for fairly traditional organizations. To put it simply, loan-out companies are three things: personal service companies, traditional business entities, and employers of employees. A loan-out is a personal company, a legal business entity registered with the state in which it is established. They can take many different forms such as an LLC, an S-Corporation or a C-Corporation. Once it is formed, the loan-out company “loans” the services of the employee of the loan-out, e.g., an actor, director, writer, etc., by entering into contracts with the other party, such as producers or production companies.