Loan-Out Corporation – Notice & Instructions

Payment of Corporations

CAPS will pay loan-out corporations adhering to the following guidelines:

  •  The corporation must be valid and currently registered
  • Must be single-owner entity* (see exception below)
  • Single owner owns all shares of the company
  • Corporation appears on state website as an active corporation AND owner provides W-9 Form to CAPS

*Exception: A married couple (e.g. husband and wife DGA team) may both be loan-out employees of the same corporation. A Loan-out Corporation may also consist of multiple members of a band or other performance group.

Documentation needed for loan-outs:

  • S-Corp or C-Corp: Completed W-9 and a valid Form I-9 are required. In certain circumstances, if CAPS needs further clarification, Articles of Incorporation may be requested.
  • Single Member LLC: W-9 and IRS Acceptance Letter, approving the “S” or “C” corporation status, and a valid Form I-9 are required. In certain circumstances, if CAPS needs further clarification, Articles of Incorporation may be requested.
  • Partnerships: W-9 and either a 1065 Tax Return or Partnership Agreement and a valid form I-9 are required. In certain circumstances, if CAPS needs further clarification, Articles of Incorporation may be requested.

CAPS does not pay:

  • Disregarded entities
  • DBAs, businesses, corporation partnerships, vendors, etc.
  • Individual/sole proprietorships