Keeping the Business Legal and Paying People

G

God of Egos

Member
I want to be serious and professional on what I'm doing with my work. I have some legal business tax and payroll questions that I hope someone here can help me with. My plan is to have an online business selling movies, games, books, etc. that I've made online via my web site, rogueego.com. I know I have to get a sales tax permit, hosting, and other online shop matters.

My questions relates on how to pay people. Starting out, what I'll be doing is working with people on a movie project with no one getting paid up front (of course, I'll provide food). What we'll agree on is a percentage of sales. How should I pay everyone after the DVD sales a bit? Do I need a payroll company? Should I get a business checking account to pay with? How do I report taxes and business expenses? Should I set up an LLC? What other things should I look into and know about? I should note that I live in the USA in the State of Oklahoma. (I know that information is very important since taxes are different everywhere.)

Also, unrelated question, how do I change my name to Rogue Ego?

Thank you in advance for any help provided.
 
I have another question. Since it seems no one knows, how about another place or person I can try to ask these questions?
 
That's why I prefer a deferred pay for cast and crew not getting paid until the film sells. Percentage is hard to track unless you sell the film once and no longer expect future revenues. If you are doing a self distribution model where monies could come in over the course of many years - the bookkeeping is hell. Every time a DVD is sold for $20, you have to break down the percentage every time, etc.

Deferred is keep all monies in an account till it covers your deferred costs (which are known before production starts). Pay off all deferred and all future monies are yours.

You can hire out a payroll service if you want them to deal with withholding taxes, mailing tax info, etc.

Michael
 
There are a lot of well tested business models for both deferred and residual based contracts. I would suggest looking at the SAG Indie contracts for examples of standard contracts. The "Short", "Ultra Low Budget", "Low Budget" & "Modified Low Budget" are well regarded in the industry.

http://www.sagindie.com
 
On the film I am producing now, I had SAG actors under the Indie Sag rules, and deferred for rest of cast and crew. Stipends, food, and expenses were covered. Points are only for investors and my company once all other payments have been made. Much easier to keep track of.

Michael
 
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