To finance a feature film, producers usually set up a production company and sell shares in the business unit. A production company can be any form of business unit, for example. B a limited partnership, limited partnership (“LP”) or limited liability company (“LLC”). In general, LLCs are recommended as production units. They are the most flexible in terms of tax treatment and the distribution of power between members and between members, while offering entrepreneurs the benefits of limited liability. This means that the personal assets of some LLC members are protected against LLC`s debts. To create an LLC, organizational documents and registration fees must be submitted to the Secretary of State in the founding state. In some states, such as New York, there is also a publication obligation. Members of LLCs may be individuals or other entities, such as.B. companies or other LLCs. 2. The publisher is responsible for the processing of the project.
The publisher works closely with the director and any other person the producer chooses in this way. The editor integrates the film with all dialogue, sound effects, visual effects and music to create the final project. The publisher devotes all his working time to the processing project until the completion of the project. The publisher cannot accept other projects that would in one way or another compromise all his attention and time for this project. It is typical for producers to commission experienced securities advisors to write a Private Placement Memorandum, which they then register either with the relevant federal and regional authorities or apply for an exemption from registration with the same national and federal authorities. These offer plans must contain a description of all the essential elements of the film project, including biographies of all employees involved, risk factors, budgets and projections. They must indicate where all initial agreements underlying the offer are filed and that they can be reviewed upon request. An important risk that needs to be disclosed is the risk of not receiving distribution and paying negative costs. For example, independent films that never receive distribution do not recoup their expenses, resulting in a loss for investors.