Realizing that the amount of money involved is small (we are low budget filmmakers so we proudly pinch pennies), my associates and I have a completed film for which we eventually will be looking for a distributor. Right now, we're working on building a web presence for the film so the time is not quite right to talk with distributors. My question - The film is currently owned by our LLC. We're in California where that costs us at least $800 per calendar year and another payment is coming up. We're well past the point where we need the LLC as a liability shield. If we close the LLC and own the film among a few of us, will potential distributors care? (This is a point of debate among those of us who would be the owners.) TIA for any thoughts
If you have a Poster, One-sheet, solid script... you should be able to find an agent rather quickly... If you don't you might want to review the project as a whole. On the other hand with the LLC, it is better for the project to have a formal LLC in place. It will make the production and delivery straightforward for all copyrights, deal memos, contracts, distribution deals and payment for pre-sales and backend.
Thanks, Georgia.
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Hi Doug, we just went through the entire process of a $50K feature from concept to international distribution, including Lionsgate... having the LLC properly in place made life much easier, especially for production and delivery due to bank accounts, contracts, ownership, investors, payments from Pre-sales and managing payment to cast, crew and investors ROI.
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Doug, you are saying that your film is complete and so you don't think you need the liability shield of your LLC and do you think potential distributors / sales agents will care. That's really two questions: 1) Will distributors / sales agents care? Depends on how many owners there are. See, they have to report to the owners that sign the contract and every owner will have to sign the contract / license agreement... so its kind of a pain, but you should be able to form a partnership that then authorizes one individual to sign... not sure what that will cost in CA though.. and then there's taxes... and partnerships offer no liability protection which brings us to ... 2) You DO still need the liability shield. Just because you are done doesn't mean that legal issues won't come up with the film. Suggestion? File in Nevada or another state without the outrageous fees that CA charges... and talk with an attorney that will be able to ask you all the questions to help you make the right decision.
Georgia and Jon. Thanks to you both. We are continuing to sort through it.