Hey everyone,
Needing some advice/guidance on obtaining an LLC for a short film, Why is or isn't it important? The film will be shot in Louisiana and it includes a horse chasing scene as well as a child actor. I figured I'd get an LLC to protect me against any sort of liability, I originally planned on everyone just signing wavers.
I've been told I should obtain film insurance as well or I could go through a payroll company that offers workmans comp...not sure which direction to go.
Also, I am trying to create a bigger incentive to invest in the project by getting fiscal sponsorship so those who want to write their donation off can. If I get a fiscal sponsor do I really need an LLC for this?
I keep getting different answers on all of this so I thought I'd take it to these message boards for more advice.
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Forming a Limited Liability Corporation (LLC) is generally a good idea for various & sundry reasons but the corporate veil is easily pierced. It also means that you need 'corporate officers', but it's not very expensive to set up. You're in CA but the project is in Louisiana - I'm not sure what that means - do some research. You want your investors to be able to write their investment off as a (charitable) deduction - that sounds more like a 503(c) not-for profit rather than a LLC.
Make friends with a knowledgeable Attorney and Accountant.
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It separates your personal assets from your business assets for tax purposes. if you are considering this as a career (filmmaking) or if it is already, than you would expect to make a living wage in which you would pay taxes. You then don't want to combine the business purchases that are used to lower your tax payment. But more important it helps protect Bryan Casserly the person from any shit that may happen during filming. Instead Bryan Casserly LLC is liable. And i'm not talking about complicated shit like accidents and insurance im talking about something simple like your wallet. You get 100k to make the film and you don't want Bryan Casserly to eat that tax bill on that so instead you create the LLC and give Bryan Casserly LLC the 100k and instead of you eat whatever is left after expenses, But reality LLC's are for small 1 maybe two person operations but youre talking about having kids and horse chasing which will have major insurance implications especially if you are doing it on the table. Then you hire a bunch of people that could cost a lot. You would want further separation for your personal assets to limit so that if heaven forbid someone gets hurt they don't go after you personal accounts instead they go after your business. At that point you might want to consider further complicating your life and getting an S-Corp. I usually went by the 100k rule where if it's more than 100k income (in regards to filmmaking, 100k budget) it's time for an S-Corp. If it's less go with the LLC. But the inclusion of the stunt and the child actor, insurance and workmans comp it sounds like a big project so you might want to take the next step. Really all depends on the budget of the project. If it's $500 and you're filming it on your uncles ranch and it's 5 mins I mean like, who gives a shit just make sure the horse don't eat the kid. But if it's a complicated chase scene then you will need insurance and pros and coordinators and on call paramedics and security.
Also you pay Cali state tax and you might have to pay Louisiana state tax because you are working there. If you intend to pay people with payroll (the taxes, social security and medicare are taken out by a payroll company or whoever you have on staff doing the accounting) then you will need the state taxes taken out (on the W-2's) and more importantly an S-Corp.
Also it is not a non-profit. What you call a donation is not the same as like donating to a shelter. If regards to a film studio it is an investment. Officers can simply be percentaged out according to the amount of their investment in the company (did they give 50% of the budget? then they own 50%)
For your comfort I was a tax preparer for many years and yes I do look like my profile pic and yes I do sound a bit like Mickey Mouse.
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Hey Bryan. I'm a UPM on SAG signatory indie films. I've dealt with production insurance, payroll, workers comp, on both short films and features. Send me a direct message to see if I can be of service.
https://www.imdb.com/name/nm3005621/
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Hey Bryan Casserly - I have an awesome colleague from Louisiana who would be great to help you. He works on the insurance side, but has a ton of experience shooting in the state and deal structures: Emory Maginnis Emory_Maginnis@ajg.com. I'm sure he'd be happy to hop on the phone to chat. Let him know I referred you.
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Bryan, I would get one for liability for sure. Check out those relatively cheap online websites for legal like LegalZoom or others. SAG now requires insurance for New Media projects too and these sounds like stunts to me. I would definitely cover yourself in this lawyer driven world of liability in which we find ourselves. If nothing happens on the project, you could use that LLC for future projects too - depending on circumstances of course.