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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Legal Forms for Startup Businesses

June 9, 2010

One of the fundamental questions for a entrepreneur starting up a new business is how to legally structure the new entity. Each has its advantages or disadvantages, and no one structure will work for every kind of business or individual owner.

If you are thinking of starting a new business, it is best to thoroughly research the pro’s and con’s of the respective entities and think through your goals in starting the business. Do you want a side business that generates a little extra income to supplement a primary job? Do you want to grow the business to be the next Apple or HP? Is this a simple business with minimal risk or do you anticipate your new business’s activities could expose you and your personal assets to a lot of risk? How you come down on these issues will help you determine what entity is right for you.

The most common ways of organizing a new business are as a sole proprietor, a partnership, an LLC, or a corporation.

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