The legal requirement for a talent agency license may vary from one state to the other. While business licenses are standard for any business, states such as California require a special talent agency license.
You may not be able to operate as a talent agency without getting an appropriate license from the Labor Commissioner. The license that is obtained needs to be posted in a place that is conspicuous. The license number needs to be mentioned in any advertisement that solicits talent for the agency.
Before you choose to apply for a license, it is important that you are aware of who must obtain a license to operate as a talent agency.
Person � Association, company, corporation, individual, firm, limited liability company, manager (or their agents or employees) and society.
Talent agency � Corporation or person that engages in the occupation of offering, procuring or attempting to get employment for artist or artists.
Artists � Actors and actresses that render service on stage and in production of motion pictures, musicals, directors, composers, writers, cinematographers, models and others from the entertainment industry.
Obtaining the Application
The application can be obtained by accessing it online or you can also download it from the DLSE website. Apart from this you can also choose to call the licensing and registration unit from Monday to Friday 8:00 AM – 5:00 PM and request them to send you the form. You can also email the request with a complete mailing address.
The application for the new license must be made in the form that has been specified by the Labor Commissioner. The application form needs to contain the following information.
Proposed business name of the talent agency. It should not be similar or identical to another talent agency that is already licensed.
Proposed place of business and main office address. This address should also be the mailing address.
If the applicant is not a corporation, you may have to submit the names and addresses of all those persons that are financially interested (associates, partners, employees, profit sharers and other persons receiving a share of the net profits). The share of net profit that each person or associate receives also needs to be specified.
If the applicant is a corporation, name, address and title of persons operating on behalf of the corporation has to be specified.
Individual applications must sign and provide full name details. In case of partnership all details of partners need to be provided.
The business or occupation that was conducted by the applicant for at least two years prior to the date of application.
The application that is submitted must be accompanied with two sets of finger prints of the applicant. Apart from this they should also include affidavits of at least two reputed individuals of the city in which the business of the talent agency is to be conducted. This is to ascertain that the applicant is of good character. In case of a corporation it indicates that it has a reputation for fair dealing.
Documents to be Submitted
When submitting a new application form, you may be required to submit the following documents:
Bond (DLSE 306)
Affidavit of Character (DLSE 301-A Rev. 9/11)
Personal Record (DLSE 301-B Rev. 9/11)
Premise Certification (Rev. 1/11)
Nonexclusive Contract Between Artist and Talent Agency (Sample) (DLSE 315A) (Rev. 09/10)
Exclusive Contract Between Artist and Talent Agency (Sample) (DLSE 315B) (Rev. 09/10)
Fee Schedule (Sample) (DLSE 315C)
Request for Live Scan Service
Certificate of Workers� Compensation Insurance
Copy of Driver�s License/Photo ID
Fictitious Business Name Statement (if applicable)
Articles of Organization (if limited liability company)
Articles of Incorporation and Statement of Domestic Stock (if corporation)
Business Tax Registration Certificate (if business is at residence)
The other documents that need to be submitted along with the application include:
Talent surety bond that is required by the Labor Code Sec 1700.15. The bond can be issued by a corporate surety company. The company must be authorized to write surety bonds in California. It must be done on the form prescribed by the Labor Commissioner. The name of the talent agency and the principal of the bond must correspond with the name of the talent agency and that of the principal on the application form.
Contract forms (triplicate) that are proposed to be used in the conduct of the business.
Fees schedules (triplicate)
One of the important things that you need to remember is that incomplete application form and this includes incomplete submission of required documents may delay the licensing process. Apart from these documents the Labor Commissioner may require additional documents to investigate the competency and character of the applicant.
You can resubmit the application form along with all the relevant documents within 30 days of getting notice from the Labor Commissioner.
Investigation
After receipt of the application by the Labor Commissioner a thorough investigation is done to check the character and responsibility of the applicant. The investigation covers the place that has been designated for conducting the business of the talent agency.
Denial of License
The Labor Commissioner may after giving proper notice and hearing deny a license. The license may not be granted to a talent agency if the place where the business is to be conducted endangers the safety and health of the artist. It may also be denied to a person whose license has been revoked within three years from the date of application.
Fees
Filing fees of $25.00 (twenty-five dollars) needs to be paid to the Labor Commissioner at the time when application for license is made. Apart from the filing fees, annual and renewal fees need to be paid each time a license is issued or renewed.
Annual license fee $225.00 (two hundred and twenty-five dollars)
$50.00 for each branch office maintained by the talent agency in California.
A fee of $25.00 will be paid for consent to transfer of the talent agency license. No assignment fee will be required upon the transfer of the license. The location of the talent agency should not be changed without the written consent of the Labor Commissioner. The location can be changed only after getting a proper approval.
Duration of License
The license that is issued to the applicant will be valid till the next birthday of the applicant. In case of a partnership, it will be the birth date of the oldest partner. If the applicant is a corporation, it is the date when the corporation was formed. It is advisable to keep track of the duration of license so that it can be renewed without any delay before the expiry period.
Renewal Application
The renewal applications need to be filed with the Labor Commissioner at least 30 days prior to the start of the new license year. If the renewal application is not filed before the expiration date, then the license expires and cannot be renewed. In such cases a new application may have to be submitted for the license.
Temporary or Provisional License
When an application for new license or renewal has been made and the verification proceedings have not been completed then the Labor Commissioner may provide at his or her discretion a license that is valid for a period not exceeding 90 days. The provisional license is cancelled when the new license is issued after completing all verification process.
Bond Requirement
The talent agency needs to deposit a talent surety bond to the Labor Commissioner prior to the issue or renewal of the license. The surety bond is usually a sum of $50,000.00 (fifty thousand dollars). The surety bond helps protect the obligee against any kind of financial loss. The financial loss could be due to acts of fraud or deceit by the Principal of the talent agency.
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When you get a surety bond, you gain the trust of the obligee. The bond price is usually calculated based on the information that is provided in the application. The surety bond approvals are similar to loans and are based on many factors.
Financial strength and personal credit of the Principal of the talent agency
Liens or judgements
Bankruptcies
Length of time of business
Bond amount
Type of bond
Obligee and Conditions
The surety bonds shall be payable to the people of California with the condition that the person applying for the license will pay all sums that are due to individuals or group of individuals when such person or their agent or representative have received such sums. They will also pay all damages caused to any person by reason of fraud, misrepresentation, deceit, misstatement and any kind of unlawful acts or omissions of the licensed talent agency.
Disposition of Money Collected for Violation
The money that has been collected as fines for violations shall be paid to the State Treasury and credited to the General Fund.
The license that is issued to the talent agency after completing all the formalities contain the name of the licensee, address where the licensee is permitted to carry its business and number and date of the license. The process for applying for a talent agency license in California becomes easier if you are aware of the many modalities to be followed during the application and renewal period.