Raising $50,000 for a Feature - Will this legal structure work?

W

Why4009

Active member
Hi,

I have been asked to executive produce a movie and have spent some time reading various blogs and sites trying to understand the proper legal structure for raising funds.

Going the route of the PPM seems extremely costly to raise $50,000. However, I am against trying to raise money without the proper structure.

Would a limited partnership with an LLC as the general partner work? The LLC would provide the protection for the producers, etc.

Or does this not get around the need for a PPM and accredited investors?

Thanks.

Richard
 
I just learned from the SEC that you can solicit money with a PPM and you have 35 exemptions which allows you to obtain money from people who are not accredited. Has anyone heard of this? Thanks.
 
That's the limit for unaccredited investors. You can't go beyond that. But you still have to do due diligence with respect to the LLC & the PPM. You will need certified financials by a CPA and an SEC attorney letter. So in order to raise money you have to spend quite a bit on expert help so you don't run afoul of the SEC and the Dept. of Corporations. It's not something you can learn as you go.
 
As mentioned. Its best to let someone who deals with this on a regular and knows the business inside and out to take care of it. Will save you time and hopefully a headache. Good luck with everything.

Nicole
 
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