To make a film, one has to incorporate to put at least one degree of separation between your person (+ possessions) and a potential lawsuit. That being said, so far all my research points to a nonprofit.
Other limited-liability forms (C-, S-, Delaware- corporations, LLC, LLP?) have one major flaw (besides others): for-profit. As such, you cannot accept donations of money, resources or labor. Expenses and headaches connected to that are well beyond a $10,000-flick range.
So is non-profit the way to go?
If so, would anybody who has had the experience be kind enough to give a few details?
For instance:
How much was the filing fee?
How long did it take?
What kinds forms do you file at the end of the year?
Have you had to change bylaws?
What happens if you sell the film? Can you switch from NPO to a commercial corporation?
How about equipment that you buy yourself? Do you have to report it as donated to the corporation? Can you just loan it to yourself for free to avoid the paperwork? Or would you want to report it to deduct from taxes on profit (if you make any)?
Etc etc etc
Is there anything on the Internet about non-profit production? I?ve had no luck so far.
Thank you for your time
+dp
With your 13 questions and your "etc, etc, etc." it might be better for you to pick up several books on incorporation. Several of your questions will need legal council and not messageboard replies.
I can tell you for sure that a non-profit organization isn't the way to go when putting together a company to make movies. By it's very nature a movie project is a for profit venture. There are, of course, exceptions. Some documentaries, a movie as an informational or teaching tool - that kind of thing. A "non profit" in legal terms doesn't mean a company that doesn't turn a profit. So, no, you cannot switch it if you sell the film - the film made from donated money. That would be considered fraud.
So if you chose to make a movie under a non-profit organization, you will need to make sure all the legal aspects are covered. I don't think a messageboard is the place. Cheaper, but not accurate.
For one movie in the $10,000 range I suggest you go with a standard LLC. Frankly, I think it's overkill, but protecting your personal assets is important so that seems the best idea.
=============================================
The aim of an argument or discussion should not be victory, but progress.
Joseph Joubert, essayist (1754-1824)
=============================================
The aim of an argument or discussion should not be victory, but progress.
Joseph Joubert, essayist (1754-1824)
thanks much for replying, CI.
i really don't care about having a production company per se, and also, we're talking one movie over the next 13 months ? after that, who knows.
so it's a one-time deal, and the only reason i'm even considering incorporating is the above-mentioned legal stuff.
As for possessions to protect, i don't really have anything besides a car -- no house, etc, but I?m sure that would be of little interest to a judge awarding damages.
on top of that, I?m told that both signing waivers and having a company doesn't really protect you: they'll sue despite waivers an go after you personally (board member) despite limited-liability status.
So wouldn?t it be better to avoid all the hassle if you?re liable anyway and just shoot the film as an individual proprietor?
Now, with LLC ? you would have to pay everybody, at least minimum wage, pay for workers comp?.that?s your budget spent on just wages in a few days, nothing to mention about all the paperwork involved
You?re certainly right about this being no place for a detailed legal advice: I am merely looking for opinions based on previous experienced of fellow filmmakers to help me make a decision that I can then pursue the proper way
Thank you again
+dp
