Quote Originally Posted by Allen Friday
Or, your can incorporate as a LLC, a limited liability corporation, most of the benefits of a C corp, but with relaxed requirements. It's run more like a sole proprietorship, but you still have the limited liability of a corporation.
This is the way I went. As a single member LLC, your filings are the same as with a Sole Proprietorship... Schedule C and all that. As long as you are showing profit, I wouldn't worry about too much IRS scrutiny. As long as you follow the rules, there is nothing to worry about. I highly discourage anyone from doing this as a "hobby" business. If you're doing it to simply write-off film and expenses without showing a profit, you'll get red-flagged pretty fast no matter how small the numbers. Like others have said, unless you are making a significant amount of your income from your work, keep it a hobby.