Setting Up an L.L.C.

Today, I've finally begun the process of putting together Sam Bailey and 8 Sided Films as legitimate business structures.

Like most young entrepreneurs, I've got my excuses for not getting to it earlier - in my case, the reasons revolved around the whopping filing fees in California. Rather than look for a solution, I focused on the billions of other things it's taking to get Sam Bailey off the ground.

Problem is, how am I going to get money for my movie if there's nothing to exchange for it? By making my movie legally tangible, I give myself something to divide between myself, my collaborators, and my investors.

This week my friend gave me some sound advice about how a young upstart such as myself can handle those expenses. After a little research, I confirmed what he told me, figured out the ins and outs, and now I'm setting up some Limited Liability Companies.

By the way, does everyone know what the difference between an L.L.C. and a corporation is? Basically, an L.L.C. promises to keep their financing activities limited to people the company knows or meets through personal contacts. Corporations can go public and sell stocks on the market, where absolutely anyone can buy them.

Because people can get into a lot of trouble investing, the government makes sure that anybody who can take money from investors on an open market, like Wall Street, does business according to a very strict, structured standard. Companies that aren't out there telling strangers to invest with them can conduct their business any way they like.

With an L.L.C., all the rules are rules I create. Without ten thousand shareholders telling me to make the stock go up, my mistakes are between myself, my collaborators, and the few investors who understood my business plan and built a relationship with me. For me, it's the right fit.

At the same time, there's something to be said for setting up a corporation, and being able to bring in millions of dollars a day with a public stock offering. Loads of people have gotten very rich that way. Besides, the government has a point. Corporations work, they have their structure to thank for it. In many ways, all those rules and regulations are a safety net to make sure your company is built to succeed.

Over the many years I've been handling film investments, I've read a lot of memorandums and Articles of Organization. Beyond that, the film market is something I've got nearly a decade of experience navigating. To the degree that anyone is, I'm clear on what works and what doesn't.

Today seemed like a good opportunity to bring these things up for conversation, so please feel free to ask any questions you have. More than anything, I think the lesson here is that we all hold things back out of fear. At the same time, none of us need to be an expert to find our way forward.

Instead, we need to keep our relationships healthy, and to keep asking questions!