When to Ditch Sole Prop for LLC + Insurance?

Hey everyone,

I'm Elena, a working Producer trying to figure out the best business structure as my projects grow. I've always operated as a sole proprietor for smaller gigs, documentary shorts, corporate video work, that kind of thing. It's been lean, mean, and simple for tax purposes, basically just focused on getting the job done. I’ve recently been getting more ambitious narrative projects, some with budgets inching into the low six figures, and it’s making me think.

All the 'best practices' guides say you need an LLC and full E&O, general liability, etc., from day one. And I get why, protecting personal assets, looking professional. But honestly, when does that 'scrappy sole proprietor' approach actually make practical sense? And more importantly, at what specific budget, crew size, or project type does it definitively become a risky, dangerously insufficient gamble? Interested to hear real-world experiences and thresholds.