Sophisticated financial advisors and other professionals set up loan-out corporations for entertainer clients such as actors and musicians to insulate their wealth from unfounded and frivolous lawsuits. Loan-out corporations can also be used to mitigate taxes.
The way it works is that the entertainer—an actor, for instance—is an “employee” of the loan-out corporation. The corporation then enters into contracts with other businesses wanting to use the entertainer’s “brand” to market their services or products. Then the loan-out corporation “loans out” the services of the actor to the production company.
Russ Alan Prince is a strategist for family offices and many of the wealthiest families in the world. He helps them define and refine the desired outcomes they want. Russ also provides direction in selecting and structuring ultra-wealthy families’ relationships with private wealth industry professionals so they get superior results.