Should I Include Myself as an Individual or My LLC in a Non-Disclosure Agreement for a Project Pitch?

Question from John Dwane, Should I Include Myself as an Individual or My LLC in a Non-Disclosure Agreement for a Project Pitch?

Answer from AI:

When drafting a Non-Disclosure Agreement (NDA) for a project pitch, it’s important to consider who will be the disclosing party. This could be you as an individual or a business entity, such as a Limited Liability Company (LLC).

Individual vs. LLC in an NDA

The choice between including yourself as an individual or your LLC in the NDA depends on several factors:

• Liability Protection: An LLC provides a layer of protection between your personal assets and your business activities. If a breach of the NDA leads to legal action, having an LLC could protect your personal assets from being targeted.
• Professionalism: Operating under an LLC can add a level of professionalism to your dealings and may be more appealing to networks.
• Cost and Complexity: Forming an LLC involves costs and administrative tasks, including filing fees, annual reports, and potentially, business taxes separate from your personal taxes.

Considerations for Forming an LLC

If you decide to form an LLC for your production company, here are some general steps you might take:

1. Choose a unique name for your LLC that complies with your state’s rules.
2. File the Articles of Organization with your state’s Secretary of State office.
3. Create an Operating Agreement, which outlines the ownership and operating procedures of the LLC.
4. Obtain an Employer Identification Number (EIN) from the IRS. Even if you don’t have employees, an EIN is often required for opening a business bank account.

Consult with a Legal Professional

While this information provides a general overview, it’s important to consult with a legal professional for advice tailored to your specific situation. They can help you understand the potential legal and financial implications of your decision.

For more information on NDAs, you can visit the U.S. Patent and Trademark Office website. For guidance on forming an LLC, the U.S. Small Business Administration provides a comprehensive guide.

Remember, an NDA is a legally binding contract, and the decision to form an LLC should be made with careful consideration. Always seek professional advice when dealing with legal matters.