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Forming a Film Production Company?

 
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Dan

External


Since: Feb 23, 2006
Posts: 4



(Msg. 1) Posted: Wed Jul 14, 2004 3:16 am
Post subject: Forming a Film Production Company?
Archived from groups: alt>movies>independent, others (more info?)

Hi,

My friend and I want to form an independent film company,
its first project being a finalized script we wrote. We
want the company to meet certain objectives including:

1 - Having an attractive environment for outside investors.
Yes we need money!

2 - Treating each film project as a legal entity to make sure
any potential lawsuits do not cross project boundaries,
and cap potential losses to the particular project.

3 - Minimize tax on profit to shareholders.

4 - Shield shareholders' personal assets.

After some research, it looks like forming a Serial LLC
in Delaware would meet these objectives. However,
actual film production will take place in Wisconsin.

Some questions we have are:

1 - Where should we incorporate and why?

2 - Is a Serial LLC best?

3 - Should we hire a business-planning consultant?

Any advice is greatly appreciated.

TIA,
Dan

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Matt Sandstrom

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Since: Jul 10, 2003
Posts: 37



(Msg. 2) Posted: Wed Jul 14, 2004 8:36 am
Post subject: Re: Forming a Film Production Company? [Login to view extended thread Info.]
Archived from groups: per prev. post (more info?)

Dan wrote:
> 3 - Should we hire a business-planning consultant?

no, just ask a few questions on usenet. :-)

/matt

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Asbestos Jeff

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Since: May 16, 2004
Posts: 6



(Msg. 3) Posted: Wed Jul 14, 2004 2:40 pm
Post subject: Re: Forming a Film Production Company? [Login to view extended thread Info.]
Archived from groups: per prev. post (more info?)

You need to talk with a business attorney in your state.


> 1 - Having an attractive environment for outside investors.
> Yes we need money!

First off, your investors aren't going to like a DIY company. Second,
you must be extremely careful about raising investment--you must do it
correctly.


> 2 - Treating each film project as a legal entity to make sure
> any potential lawsuits do not cross project boundaries,
> and cap potential losses to the particular project.

The project isn't the entity, the project is the property the entity
owns. You may set up a lean company to develop and produce projects,
then set up holding companies to take title to each individual
project. There's no way you can set up a web like this without careful
planning and contracting, which you will need a lawyer to accomplish.


> 3 - Minimize tax on profit to shareholders.

That's up to their accountants, not your web research. Let them tell
you what they need.


> 4 - Shield shareholders' personal assets.

Yeah.


> After some research, it looks like forming a Serial LLC in Delaware would meet these objectives. However, actual film production will take place in Wisconsin.

By the time you form in Delaware and register in Wisconsin, you will
have spent more than if you just form in Wisconsin in the first place.
It'll cost you less, too, since your average Wisconsin lawyer will
have more experience with Wisonsin companies than Delaware companies.


> 1 - Where should we incorporate and why?

I already told you.


> 2 - Is a Serial LLC best?

Maybe.


> 3 - Should we hire a business-planning consultant?

Hell, no. Hired a damned business lawyer.

Seriously--this isn't like changing a headlight. You have some very
particular needs to be cared for. You can't do it if you're not
trained in it.
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