Guide to Forming & Investing in Independent Film Productions

July 8, 2010

Everyone wants to be in the movies, and that includes investors.  However, any potential investor interested in putting their hard-earned money behind an independent film production should be careful before making the decision whether to invest. There are a number of things which a potential investor should look out for before agreeing to invest in an independent film production.

The most common approach for structuring a film production is to form a Limited Liability Company, or LLC, for the purpose of producing one film.   A LLC is a form of business entity which provides the legal protections of a corporation without the formalities required of corporations.   Like a general partnership, the members of the LLC (or “investors”) can participate in management of the LLC, or most management decisions can be delegated to one manager (or “producer”). The LLC is a pass-through entity for tax purposes so if the film does produce revenues, each individual member pays their income taxes individually.

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