I have met an investor who has started his own production company. He is fully funding his project through his own resources. He has asked me to produce a ?600k indy feature. I have not done a co production deal yet. His role will act more like an Exec prod. My production company will actually produce the movie.
What I am confused on is the following.
1) since he is funding everything, will I have rights to ownership and profit or backend. Or would I be considered work for hire.
2) Why LLC or incorporate the movie? My projects always fell under my company's domain rather than a separate company for each project. I can understand the logic, but is it necessary. So payroll, insurance, disbursements all come out of this temporary company? How would I establish a signatory account for disbursements. Would the EP and I be the only members of the LLC.
I know this may sound confusing.
I appreciate any help
quote:
1) since he is funding everything, will I have rights to ownership and profit or backend. Or would I be considered work for hire.
Since you haven't written out a contract, you can stipulate the working agreement any way you like when you do.
quote:
2) Why LLC or incorporate the movie? My projects always fell under my company's domain rather than a separate company for each project. I can understand the logic, but is it necessary. So payroll, insurance, disbursements all come out of this temporary company? How would I establish a signatory account for disbursements. Would the EP and I be the only members of the LLC.
My answer is essentially the same. It depends on how you write the contracts,
The advantages of an LLC is the company will be liable for everything rather than the individuals - but I'm sure I'm just stating the obvious. As a business owner you already know all the advantages of forming an LLC.. So while it's not necessary, it has many advantages. If you want YOUR company to handle everything - write the contract that way. If you want to set up a new company with both you and the ExecProd - then write it that way. If you want the ExecProd, you and someone else in the new LLC - then write up the articles that way.
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The aim of an argument or discussion should not be victory, but progress.
Joseph Joubert, essayist (1754-1824)
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The aim of an argument or discussion should not be victory, but progress.
Joseph Joubert, essayist (1754-1824)
