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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 118210
Experience:  All corporate law, including non-profits and charitable fraternal organizations.
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I am a non-US resident setting up a TV and Film Production

Customer Question

Hi there. I am a non-US resident setting up a TV and Film Production company in LA. Let's call it Amazing Film Productions. As part of my immigration visa requirements I can only work for the company I set up e.g. Amazing TV productions - but I have a slate of project in the works. Say we have 5 films lined up we want to produce. Normally what a producer does to get finance is to set up a company for each specific film and sell shares to people who want to invest in the film. So in a few years going well, I will have 3 or 4 films out there, each which it's own company and investors etc.
But, given that I can only work for Amazing Film Productions how can I best structure this e.g. set up Amazing Film Productions as a Corporation and have subsidiaries of some sort?
These all need to be separate entities because say for example
Film 1: George Lucas decides to invest in Amazing Movie 1 exchange 80% of the company. Film flops.
Film 2: Wientein Brothers invest Amazing Movie 2 in exchange for 70% of the company. Movie is a hit.
You need them as separate entities so George Lucas cant come back looking for his money back from the Amazing Movie 2 because he somehow thinks he owns a share of the overall company.
How can I structure everything properly?
I hope this makes sense!
Submitted: 1 year ago.
Category: Business Law
Expert:  Law Educator, Esq. replied 1 year ago.

Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.

You do this easiest by forming a Series LLC, which you cannot form in CA, but you absolutely can do in NV. Once you form the main LLC in NV, each new film project would be a "cell" or "series" of the main LLC. It would be formed in NV and you would register it in CA as a foreign entity doing business in CA with the franchise tax board.

You would remain the employee of the main LLC which is who you would be working for on each film and who you would be paid through. So as your own company owns these other cells, that is not an issue. You are only working for your company.

Customer: replied 1 year ago.

Hi there and sorry for my delayed response. This sounds perfect!

However, I already formed the LLC in it possible to switch the same LLC to a different state or would I have to start afresh?

Expert:  Law Educator, Esq. replied 1 year ago.

Thank you for your reply.

It would likely be worth it for you to shut down the CA LLC and do everything in NV or WY based on what you described. That is the only way to switch. You take the CA LLC and register it as a foreign business in WY or NV, then close the CA LLC with CA. Then you can use the series LLC.