As a writer, I formed a loan-out company so that when I am hired to write film and TV, companies actually hire my company. This practice has been going on in Hollywood for years, and is a great way to manage your money, have write-offs, and allow writers, directors, actors, and IATSE members to budget accordingly for the fat and lean years.
But now, the California Employment Development Department (EDD) is coming for loan-outs, and this could quite possibly destroy the way the majority of how Hollywood does business and have serious ramifications for everyone in the industry.
Source: California’s AB5 Law Threatens Film and TV Workers Who Use Loan Outs | No Film School