Lucky break but unprepared!

[Saramirez787]

I run my own production studio where I mostly do short internet advertising videos. Recently however, I received a call from a man who is writing a feature film and was looking for advice on the filmmaking process. I have a bachelors degree in Television/Film and have shot a couple of short films and PA'd on a small television show and a feature film, so I was able to answer all of his questions in detail.

This past weekend he and his partner drove an hour to my city and took me out to dinner where we talked for quite a while, and it looks like I am going to produce, direct and edit the film. He has saved up around $150,000 and is set on getting this film shot over the summer. I warned that it was not a guarantee that the film would make money but he's still set on getting it made.

I understand the actual production process fairly well but it's the business side that has me a little worried. For example, what are the tax implications, would I be an employee to his production company or would we be a coproduction, insurance, unemployment, etc.

The script is not finished yet and I haven't been able to look through it all yet and break it down, but on average what could I expect to be able to create with $150,000. How much should I ask for myself (we have agreed that I would definitely be paid, just haven't discussed numbers yet).

Any other advice anybody here has would be great. I would really love to make this a success and give me a good start towards my filmmaking career.

 

[directorik]

Welcome to indietalk!

I understand the actual production process fairly well but it's the business side that has me a little worried. For example, what are the tax implications, would I be an employee to his production company or would we be a coproduction, insurance, unemployment, etc.

Ask him. You are right to think about this. The answer depends on
several things you don't mention here. But these will need to be
addressed so sit down with him and work out these details.

The script is not finished yet and I haven't been able to look through it all yet and break it down, but on average what could I expect to be able to create with $150,000. How much should I ask for myself (we have agreed that I would definitely be paid, just haven't discussed numbers yet).

Take a percentage of the total. That's a nice budget depending (as always)
on the needs of the script. When you see it and do your breakdown the
answers will become more clear.

 

[Will Vincent]

what are the tax implications, would I be an employee to his production company or would we be a coproduction, insurance, unemployment, etc.

Could be either, or as part of producing the film, you could create a new legal entity to shield both your company and his from the full liability. That might not be a bad course of action, especially if you go seeking additional investors. You might want to think about getting a more experienced producer on board though if you lack the business experience.

Also, producing, directing and editing is a LOT for you to take on yourself. Not that it's impossible, but that's a very big amount of work, and having a producer who's responsible for making sure the budget stays on track and gets you the things, places, and people necessary to direct your vision is going to be very valuable to you and free you up to focus on directorial business and not have to worry so much about the business business..

 

[Saramirez787]

What do you mean by a new legal entity? It doesn't seem like we are going to be pursuing anymore investors, however he did mention seeking possible sponsors who would be willing to donate certain things for credit in the film.

And I suppose you are right about looking for somebody a bit more experienced than I am on the business side of things, however one problem is that this area is not particularly known for its film industry so that may be kind of hard. And on a selfish note, I guess I'm also nervous that somebody with much more experience than me will end up taking over the whole thing lol.

 

[Morris]

You might want to find a good entertainment lawyer. Be sure you get everything in writing. With no clear marketing plan, be sure they acknowledge in writing that they might not obtain any return on their investment. Remember to check on tax credits. http://governor.state.tx.us/film/incentives/sales_tax_exemptions/

 

[Will Vincent]

What do you mean by a new legal entity?

corporate, llc, etc.

And on a selfish note, I guess I'm also nervous that somebody with much more experience than me will end up taking over the whole thing lol.

A good producer won't be trying to direct, and your nervousness is perhaps an indication that you're getting in over your head. Filmmaking is a collaborative sport, surround yourself with the most experienced and talented people you can for every project, and that project should turn out the best it can.. regardless of budget.

 

[jax_rox]

Whilst it's certainly feasible to Direct and Edit, my personal opinion is that Directing and Producing is not something you should ever do.

At the very least you're going to need a damn good UPM.

 

[Saramirez787]

I suppose I am in over my head, but this opportunity doesn't come around very often so I'm really gonna have to fake it until I make it. And yes I have decided that I am definitely going to be hiring a good UPM because the more I research the business side of the film industry, the more I see that there are so many things that can go wrong before the shoot even starts, and I'd really like to put all my focus on creating the best film that I possibly can.