HOW TO RAISE THE MONEY TO SHOOT YOUR LOW BUDGET FEATURE
By Maxie Collier
I'm not an attorney but I've done a couple of low budget features and I
have experience with Limited Partnerships (LPs) and Limited Liability
Corporations (LLCs). In both, the number of participants as well as the
number of people you can approach about investing varies by state.
Additionally, there are sometimes conditions about selling shares (LPs)
or inviting adding members (LLCs) from other states.
There are also stipulations about advertising for investors, disclosure
laws (Blue Sky Laws), and other State and Security Exchange Issues
The best way to receive concrete advice for your situation is to:
1. Hire an attorney experienced with these issues (while most can draw
up the documents, not every attorney is familiar with state and gov.
laws concerning investors)
2. Search yahoo for your state's agency that deals with this, usual the
Secretary of State and/or Taxation Board. For example, here in CA you
can find all the forms online (for free) you need to set-up a
corporation, LP, and LLC. http://www.ss.ca.gov/
These free forms can get you up and running, but you still need to be
very careful and clear on the SEC issues. And be very careful of generic
layman's advice. It can cause you problems later.
By the way, for small investments, I have used a commonly found
renewable promissory note. With this document people can loan me small
amounts with me promising to return by a certain time (I my case 3
years) at a certain interest rate (12%) with the option to extend the
loan if I do not have the funds by the due date. Pretty straight
forward. The forms are available at Staples or other office supply
One quick shameless plug, I *Maxie Collier, have a new monthly
newsletter and website, write me at email below to receive it. The DV
Filmmaker's Report is for people interested in producing low budget
films using digital video (DV).
PS NOTE BY ANITA, not certain if he actually did all this but
was good so I posted it, Google him.
I am told that GO FUND ME com and KICKSTARTER COM are also useful for funding.
I'd google 'ways to fund businesses'
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