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Richard - Bizlaw
Richard - Bizlaw, Attorney
Category: Business Law
Satisfied Customers: 10639
Experience:  30 years of corporate, litigation and international law
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Last month I formed and LLC as I plan to make short films. Nothing

Resolved Question:

Last month I formed and LLC as I plan to make short films.

Nothing big yet, but here are a few questions.

1. If I have to hire some people like a make-up artist for $50 a day or a cameraperson for $200 day, how legal does this have to be? On a spectrum of cash to full-blown paychecks with withholdings, where does this fit?

2. If I hire said folks, what happens if they trip and fall when they work?

3. Lastly, if I make a film and at the end include language, "if you wish to invest in this film production company, click here to make a Paypal investment." If I say 25% of the company is up for sale, can these investors receive pro-rated 'shares' of this 25%?

Submitted: 5 years ago.
Category: Business Law
Expert:  Richard - Bizlaw replied 5 years ago.

bizlaw :

If the people you hire work independently, and they operate independently, you can treat them as independent contractors and not have to withhold. HOwever, if you closely supervise their activities then they would be commonlaw employees and you would have to do the withholding. If they are independent contractors, you should require that they have workers compensation insurance. You can also get your own coverage but if you treat them as independent contractors, and they get hurt you can expect that they will change their position and claim that they are really employees and you are liable for workers compensation. For this reason you should get your own coverage no matter how they are treated or require that each independent contractor carry his own insurance. On three, the last thing about language is illegal. You cannot make a general solicitation to purchase securities without registering the securities and such a general solicitation would not qualify for any exemption from registration. If you want to raise capital you have to do it through either registration or some type of private offering that is exempt from registration.

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