LLC vs. Sole Prop: When to Level Up Insurance/Biz Structure?

Hey everyone,

I’m Luis Delgado, a Location Manager, and I’m genuinely wrestling with something. All the guides out there preach the importance of a formal LLC and comprehensive insurance from day one. And I get it, in theory. But honestly, when you're just starting, hustling on smaller projects, sometimes those costs feel prohibitive.

I've been operating as a sole proprietor for a while now, mostly on indie shorts and commercials with smaller budgets. I've always made sure to get production insurance for each shoot, covering the basics, but haven't gone the full LLC route or gotten my own annual general liability policy. It's been working, to an extent.

My real question is: In this field, when does that scrappy, sole-proprietor approach actually make practical sense? And more importantly, at what specific point, what kind of project scope, budget, or client type, does that approach become undeniably, dangerously insufficient? I'm trying to figure out the real-world tipping point. Any insights?