How to legally make a micro-budget film and pay crew and actors

I have a question about legally filming a micro budget movie with a cast and crew.

My first micro budget feature had volunteer actors and crew. I then formed an LLC and got a business license to distribute movie and to produce more.

I wanted to pay my crew and actors so they weren't working for free. I found out I need thousands of dollars in workers comp and liability insurance. My budget is $10,000 so there's no money for this.

I thought I could pay them as private contractors but the state's criteria for contractors doesn't work for actors and crew. Internet articles talk about this being bad and that all cast and crew should be treated as employees. The State's Department of Labor confirmed that they aren't contractors.

Another option would be for cast and crew volunteer for free then reimburse them for expenses. This violates FLSA (Fair Labor Standards Act) which says that for profit companies can't have volunteers.

The final possibility is to create an LLC for the Movie then sign up all the cast and crew as members giving them a very small percentage. If they are all part of the LLC then they don't need worker's comp and I can pay them anything or nothing.

How do small micro-budget or no budget filmmakers do this? Do they just break the law?
 
When your entire budget is ten large you cannot afford to follow
all the employment regulations. I suspect you cannot even afford
to pay them minimum wage. Most micro-budget filmmaker are
not an LLC.

How much is your total budget for salaries? How many people
are you paying. For how many days?
 
filming over two years on and off. Actors payed anywhere from 500 down to 50 depending on the role. I'm just wondering if there is a legal way to do this or if the way to go is to dump the LLC.
 
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