Hi Dan, if I was teaching filmmaking, I would incorporate a NonDe approach, throwing most of this out the window to get the process down to less items and less time involved. The ideal would be to get it to between 6 to 18 months. Make the script a Scriptment and make the shoot Cassavetes style. Is SAG/AFTRA in the equation? Not always, especially, if it is your first film. Combine the location and funding, accomplish two items with one solution. Make sure to use an umbrella insurance policy for the production that will be purchased by your NonDe coordinator to be used by all NonDe productions. Do your Teaser. using AI, for almost nothing, to get your project out there early to help build that audience.
Thanks for breaking this out! If one is going to eventually dissolve the LLC that was created for the film, my assumption is that the film would no longer be generating any profit in any form once final taxes are filed and the LLC dissolved? What about the very long tail profit potential (anniversary retrospective, one off screenings, etc) for things that could/would happen years or decades down the line? Transfer to other entity or potentially keep that LLC open (obviously would have to keep paying for that to happen)? Do you think NonDe filmmakers should be thinking of their body of work more like how studios have cultivated their libraries of IP...My assumption is that we would have to figure out how maintain that overhead as well, as well as keep open the opportunity for people to discover it years from its creation...thanks in advance for any thoughts you might have on that!
Hey Alexa - thanks for reading & subscribing! You're right to think about dissolution early - it's an area you have to clarify in your initial LLC paperwork (Operating Agreement). The short answer is you should plan to dissolve the LLC when estimated revenue dips below expenses (which is usually just taxes plus accounting fees by the end). Typically, this is about 4-7 years after you've started the LLC. My own lawyer has advised me to set up an "umbrella" LLC of which I'm the sole member to then assign and manage the films from those dissolved LLCs. When money HAS come in years later: If you have a CAM (or CAMA), then the money goes to them and they write the checks to your stakeholders (investors, cast, crew, etc.). If you don't have a CAM(A) then you just write checks from that umbrella LLC to your folks (and let your accountant figure out what to call that). Bottom line, as long as you're transparent and straightforward with your investors, they'll be fine with dissolution when the time comes, as well as whatever long-tail strategy you've created. (and yup, there's a chapter in my book about this :)
Hi Dan, if I was teaching filmmaking, I would incorporate a NonDe approach, throwing most of this out the window to get the process down to less items and less time involved. The ideal would be to get it to between 6 to 18 months. Make the script a Scriptment and make the shoot Cassavetes style. Is SAG/AFTRA in the equation? Not always, especially, if it is your first film. Combine the location and funding, accomplish two items with one solution. Make sure to use an umbrella insurance policy for the production that will be purchased by your NonDe coordinator to be used by all NonDe productions. Do your Teaser. using AI, for almost nothing, to get your project out there early to help build that audience.
Thanks for breaking this out! If one is going to eventually dissolve the LLC that was created for the film, my assumption is that the film would no longer be generating any profit in any form once final taxes are filed and the LLC dissolved? What about the very long tail profit potential (anniversary retrospective, one off screenings, etc) for things that could/would happen years or decades down the line? Transfer to other entity or potentially keep that LLC open (obviously would have to keep paying for that to happen)? Do you think NonDe filmmakers should be thinking of their body of work more like how studios have cultivated their libraries of IP...My assumption is that we would have to figure out how maintain that overhead as well, as well as keep open the opportunity for people to discover it years from its creation...thanks in advance for any thoughts you might have on that!
Hey Alexa - thanks for reading & subscribing! You're right to think about dissolution early - it's an area you have to clarify in your initial LLC paperwork (Operating Agreement). The short answer is you should plan to dissolve the LLC when estimated revenue dips below expenses (which is usually just taxes plus accounting fees by the end). Typically, this is about 4-7 years after you've started the LLC. My own lawyer has advised me to set up an "umbrella" LLC of which I'm the sole member to then assign and manage the films from those dissolved LLCs. When money HAS come in years later: If you have a CAM (or CAMA), then the money goes to them and they write the checks to your stakeholders (investors, cast, crew, etc.). If you don't have a CAM(A) then you just write checks from that umbrella LLC to your folks (and let your accountant figure out what to call that). Bottom line, as long as you're transparent and straightforward with your investors, they'll be fine with dissolution when the time comes, as well as whatever long-tail strategy you've created. (and yup, there's a chapter in my book about this :)
Super helpful, and I look forward to reading your book! Thanks for taking the time to spell it out!