Pro Co Advice

A

A. Rieder

Hi.

I'm a new member eager for some advice. I'm in the process of starting my own production company. I've done my research and feel confident I want to register as a LLC. Currently I live in NYC, but will be moving to NC in the spring. Before I leave NY, however, I will be producing my first independent feature. Practically all of the locations are private residences, and all those involved (cast and crew) will not be paid. That said, here are my questions:

- Is it absolutley necessary to register my company before going into production, or can I wait until after the movie is complete? (I want to hold off primarily because I won't be shooting until the new year and don't want to be subject to LLC tax liabilities this year. I'd also like to wait until after I move, since I'll be registering my company in NC.)

- I know I should also incorporate my feature separately from my pro co. Should it be registered also as a LLC, or as a Limited Partnership? And again, is it absolutely necessary to do this before production, or could I wait until after?

Any advice would be greatly appreciated. Thanks.
 
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- Is it absolutley necessary to register my company before going into production, or can I wait until after the movie is complete? (I want to hold off primarily because I won't be shooting until the new year and don't want to be subject to LLC tax liabilities this year. I'd also like to wait until after I move, since I'll be registering my company in NC.)
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...I don't think it is necessary. All I did to register my company was go to county courthouse, have them see if I could have the name I had chosen, this doesn't take long. If no one else has the name, then you have a production company. If there is no income, you can't pay taxes, its too early. What can they tax?


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I know I should also incorporate my feature separately from my pro co. Should it be registered also as a LLC, or as a Limited Partnership? And again, is it absolutely necessary to do this before production, or could I wait until after?
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...I don't know about incorporating a feature separately from your production company so I'm no help there.
I am planning to become a LLC, but I might not have that in place before I start shooting, but I am working on it. If I find out anything else, I will post it...

--spinner :cool:
 
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If there is no income, you can't pay taxes, its too early. What can they tax?
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Actually, that varies from state to state. My company (not film-related) owes the State of California $800 in taxes just by being in existence... no matter if I don't sell a single thing all year.

DE is a good state to incorporate in if concerned about tax requirements; no residency requirement, either.

_______

You should talk to an entertainment attorney, Rieder, in the various states you're hopping around in.
 
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Zensteve said:
DE is a good state to incorporate in if concerned about tax requirements; no residency requirement, either.
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Just a tip. You should incorporate in the state you do business in. Large companies that incorporate in DE have offices there, not PO boxes. If you go the PO box route, but operate your business out of another state, you will have to pay taxes in both states, so there is no point. Any lawyer or accountant will tell you this. Don't believe the advertisments, they just want your $$.
 
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Thanks for the input. Here's what I'm gathering so far:

It's recommended to incorporate the feature seperately from the pro co so that if for any reason someone wants to sue you, only the assets linked to the picture (not the pro co) are liable. In other words, I incorporate my pro co, Independent Pictures , but I also incorporate my feature, Independent Feature. Should Feature ever get sued, Independent Pictures remains untouched. Now, should both be LLCs? I don't know. I know it would be best just to sit down and talk it through with a lawyer, but I was hoping one of the many of you out there who have done it already could help me avoid this. My shoestring budget is about to go velcro.
 
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