hiring a produer

[chlsy8]

We set up a LLC for our film, want to hire a producer, but he said he is afraid of liability and legal issues and would like to be hired as an employee instead of freelance contractor, we are not sure what that brings us since we never hired somebody before, any comments?

how about he set up a LLC and just sign a contract with our LLC?

[finderskeepers]

Sounds like you got a person that wants a paycheck not someone who really wants to produce a film. I say drop him TODAY and get someone willing to be a contractor. My two cents.
Good Luck

[directorik]

Time to define “producer”.

To many people the producer is the person who finances a project.
But in reality a producer is usually some who is paid to produce the
movie.

If you are actually hiring someone to produce your movie then he
is being pragmatic and professional asking to be a hired employee.
This is a great person to have on board. I have been a hired producer
on several films. I get paid a day rate and I am an employee - not a
freelance contractor. I want to produce a film AND I want a paycheck.

Now if you are looking for someone to be a partner and take a financial
risk along with you then his request is unusual.

But I don’t know what YOU mean by “producer”. finders clearly thinks
you mean you are bringing on a partner who should NOT be looking for
a paycheck but should be taking a financial risk along with you.

So which is it?

[chlsy8]

Well we already have two producers (ourselves) and already done most of pre production work, but we think he is valuable to be brought into our production team so we asked him to co-produce with us.

We trust him not to screw us up. He takes deferred pay. just want to be hired instead of freelance. But we are not sure what we are getting into.

[GuerrillaAngel]

Has this producer produced any film that have made it into decent film festivals?

[Blade_Jones]

Whatever you do, don't let them handle money. Also detail in the contract exactly what the producer is supposed to do. It could be as they say everything from A to Z or nothing in between.
http://www.yourinvestmentadvise.com/film-investing.htm

[finderskeepers]

That brings up an interesting question. Can you hire an "employee" and pay them deferred pay legally? Or is that some type of partnership or intern by law?

Originally Posted by chlsy8

Well we already have two producers (ourselves) and already done most of pre production work, but we think he is valuable to be brought into our production team so we asked him to co-produce with us.

We trust him not to screw us up. He takes deferred pay. just want to be hired instead of freelance. But we are not sure what we are getting into.

[movingon]

Hiring employees isn't a simple matter. It obligates you to withhold taxes and to pay the employer's portion of social security tax, and it affects your liability in the case of an accident. Obviously there are tons of labor laws, and hiring an employee obligates you to know them and abide by them. I think the producer's request is smart from their point of view, because it reduces their risk, but it increases yours. There's no way I would hire an employee without consulting a lawyer.

[directorik]

Originally Posted by chlsy8

But we are not sure what we are getting into.

I’m not sure what you’re getting into either.

If he is working for no pay then you cannot “hire” him. You will
have him sign an agreement with the deferred payment fee and
how it will be paid out. But he will recieve no money other than
that so he cannot be an employee.

He is a partner in your production. He is taking a financial risk
along with you. You cannot “hire” someone as an employee if you
are not paying that person. So his request in unreasonable. And
your expectations are unreasonable. It's great to have a valuable
addition to your production team - but he is not an employee.

Frankly if you hire him as an employee but do not follow all the
laws regarding employment in your state you will open yourself up
to legal issues beyond liability.

Also you need to fully understand the difference between working
for deferred pay and working for a percentage of profit. Never enter
a partnership like this without fully understanding exactly what you
are doing. Words like "hire" and "employee" and "deferred" are legal
terms. Make sure you use these words correctly in any contract.

[Morris]

I agree with everyone's warnings. It does not sound like deferred pay based on you making money, but rather you will be obligated to pay him in the future. You should definitely talk to a lawyer or maybe even someone from the SBA. There might be some state agency that could also provide you with some advice. The penalties can be very steep.

[chlsy8]

Thanks guys.

Problem solved. We agreed on freelance contract.