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 can be individuals or other entities, such as.B. Companies or other LLCs. Non-SAG actors can be reminded of their chords in a cast deal memo similar to the business memo for crew members under the line. A cast-deal memo is a one-sided agreement that contains contact information, employment obligations, compensation terms, and other amenities for individual actors, such as travel and accommodation expenses and reimbursement, if applicable. A cast deal memo for a non-SAG actor also determines the type of credit the actor receives and whether or not the actor`s member is paid for the subsequent use of their footage or image for future promotion of the film.
As these actors are not represented by a trade union such as the SAG, they enjoy relatively less protection: non-SAG actors negotiate their working conditions with less bargaining power and legal skills than a SAG actor or its representative. From the filmmakers` point of view, it is very important that the company agreement is designed to ensure that the filmmaker retains full control over the management of the company. As films are very personal to the filmmaker, the company agreement should contain an “emergency plan” which, as the name suggests, should define the safeguarding plan and the consequences in case for any reason the filmmaker is unable to complete the project. We also recommend that filmmakers` commitments be specified in separate employment contracts, so that filmmakers become collaborators with the LLC and the intellectual property created is held by the LLC according to the traditional “Work for Hire” principles. A company agreement is necessary not only for the creation of an LLC, but also an extremely important instrument to deal with certain problems in writing before the problems arise in reality. If the company agreement provides a guide on what the parties involved should do throughout the production of a film, it would eliminate stress and chaos, find out what to do in case of real problems – and they almost always do. Perhaps the most important clause in a filming contract is one that exempts owners from any damage resulting from the use of the premises for filming and that continues to protect owners from the delicate commitments that can result from filming recordings. In addition, producers usually insert a disclaimer into the location agreement that any depiction of the location is fictitious and that such a filmography does not necessarily reflect the actual location. For example, a director`s employment contract would include compensation for development and production, depending on when the director was hired. The agreement could also include a provision to share a portion of the profits if the film ends well at the cinema coffers.. . .