!"# %&'( ) *+&,-./+ )0, ) 1&-+0)23#'4 5 63/7 83.()/2 93/#/:# 93/#/:# &+3;30)2 !"#$ &'( )"(*+ ,-(.*/0 )# )0 /##/0'3)2 +/? %&&=#(/2<@ 93'( #& >-.( ()630; .()0;/, 30 '(/ 7&+2, &< *+&,-.'3&04 5:> '(+322/, '& #// 3' -*,)'/, A especially by Maureen Ryan, who brings a realistic insider’s point of view to lm nances and budgets.” AB.&'' 8).)-2)?4 /,3'&+C30C.(3/<4 !"#$$&1*2 3&.&4"'*D *+&,-./+4 E&+/0#3. E&+ /0#3. E32># E 32># “The best book on lm budgeting for independent lm bar none. I have used this %&&= +/*/)'/,2? 30 >? .2)##/# )0, 5 .&0#')0'2? +/.&>>/0, 3'@ F?)0 =0&7# '(3# world inside and out. An essential resource.” —Jon Reiss, lmmaker; author; media strategist, Hybrid Cinema “When you’re rst starting out as a producer you tend to have limited budgets and will often nd it necessary to be something of a one-man-band production team: /G-)2 *)+'# .&&+,30)'&+4 >)0);/+4 230/ *+&,-./+4 *&#' #-*/+63#&+4 *-%23.3#'4 #)2/# +/*4 )0, &< .&-+#/ *+&,-./+@ 5 73#( F?)0:# %&&= (), %//0 )6)32)%2/ '& >/ 7(/0 5 7)# #')+'30; &-' 30 >? .)+//+4 )# '(/ 30<&+>)'3&0 30 (/+/ 3# .&>*+/(/0#3 .&>*+/(/0#36/4 6/4 )22C30.2-#36/4 )0, 306)2-)%2/@ H(3# %&&= 3# ) '+-/ 0-'#C)0,C%&2'# ;-3,/ '& *+&,-.'3&0 )0, #(&-2, be a part of any producer’s library, regardless of experience level.” —Jacob Jake, producer, 5' & )&##*6 +7 )"+#*'8*9 :#**;< <"/= 3* “Ryan has a knack for making budgets easy to understand. This book simplies “Ryan s implies and educates you on creating your most powerful funding tool.” —Carole Dean, author, >=* ?2/ +7 !"#$ !-'("'. ; creator, Roy Dean Film I+)0'# !9()' /6/+? *+&,-./+ ()# )27)?# 7)0'/,4 )22 30 &0/ *2)./@ "../##3%2/ )0, .&>*+/C (/0#36/4 F?)0:# %&&= 7)2=# ?&- '(+&-;( /).( %-,;/'4 )0, 73'( &0230/ '/>*2)'/# '()' )+/ /)#? '& -#/4 !"#$ &'( )"(*+ ,-(.*/0 is an essential tool for any production.” —Chandra C. Silver, producer, Silver Lining Film Group “Sound budgeting is the foundation on which to build any lm production, regard C 2/## &< #3J/ )0, #.&*/@ 5' *+&63,/# ) <+)>/7&+= '& /K*2&+/ .+/)'36/ ,/.3#3&0# 73'( ) *+&,-.'3&0 >30,#/'@ H(3# %&&= %+/)=# ,&70 '(/ <-0,)>/0')2 .&>*&0/0'# &< %-32,C ing a realistic budget . . . essential to the skill set of today’s producer.” AL/+&03.) M3.=/24 *+&,-./+4 :/&'( @#*&2 +7 /=* @#+0"'. A++20 )0, A*&( 3&'B0 ,-2(*' “This is it! It’s It’s one of the few books anyo anyone ne working in lm l m production should hav havee &0 '(/3+ ,/#= '& G-3.=2? )0, .&0#')0'2? +/*2/'/4 <-04 )0, /)#?C'&C+/), )# /6/+@ 5':# )0 -*,)'/, 6/+#3&0 '()' )0#7/+# >)0? &< '(/ ,&-%'# '()' .&>/ -* )# ) .&0#/G-/0./ &< '(3# )27)?#C changing industry. Make it your own!” A"26)+& F@ L)2/0'/4 30,/*/0,/0' *+&,-./+
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!H(3# 0/7 /,3'3&0 &< !"#$ &'( )"(*+ ,-(.*/0 3# ,-(.*/0 3# ) >-#'C+/), <&+ /6/+? 30,/*/0,/0' lmmaker. Ryan’s expertise and insight provide the rst-time lmmaker with a 7/)2'( &< =0&72/,;/ <)+ %/?&0, 7()' '(/? .&-2, /K*/.' '& 2/)+0 &0C#/'@ F?)0:# 23),/4 '()0=# '& (/+ 30,3#*/0#)%2/ C2+(-8*2 /+ C2+(-8*2 . Like her previous work, !"#$ &'( )"(*+ ,-(.*/0 *)?# <&+ 3'#/2< &6/+ )0, &6/+ );)30@ H(3# %-#30/## .()0;/# /6/+? ,)?4 %-' &0/ '(30; #')?# '(/ #)>/A?&- 0//, >&0/? '& >)=/ >&63/#@ !"#$ &'( )"(*+ ,-(.*/0 23%/+)'/# ,-(.*/0 23%/+)'/# '(/ )+'3#' '& <&.-# &0 (/+ &+ (3# .+/)'363'?4 =0&730; '()' '(/ %3;;/#' (-+,2/ '& #-../##C ful lmmaking has already been cleared.” —Je Pucillo, producer/video artist, >+; +7 /=* D+2#(9 E++/0 "' D&/*29 E*;&"209 )0, @#+0-2* “An incredibly practical resource by the nest producer I have ever worked with.” —Paul Cotter, writer/director, ,+$F*2
FILM + VIDEO BUDGETS 6th Edition
Maureen A. Ryan
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Published by Michael Wiese Productions OPQRR L/0'-+) S26,@ TOOOO Studio City, CA 91604 (818) 379-8799, (818) 986-3408 (FAX) >7U>7*@.&> 777@>7*@.&> Cover design: Johnny Ink. www.johnnyink.com Interior design and layout: William Morosi Copyeditor: David Wright Printed by McNaughton & Gunn 8)0-<).'-+/, 30 '(/ V03'/, B')'/# &< ">/+3.) Copyright © 2015 by Maureen A. Ryan "22 +3;('# +/#/+6/,@ M& *)+' &< '(3# %&&= >)? %/ +/*+&,-./, 30 )0? <&+> &+ %? )0? >/)0# 73'(&-' */+>3##3&0 30 7+3'30; <+&> '(/ )-'(&+4 /K./*' <&+ '(/ 30.2-#3&0 &< %+3/< G-&')'3&0# 30 ) +/63/7@ Library of Congress Cataloging-in-Publication Data F?)04 8)-+//0 "@, "@, 1962 Film & video budgets / Maureen A. Ryan. — 6th updated edition. *);/# .> 50.2-,/# %3%23&;+)*(3.)2 +/
O@ 8&'3&0 *3.'-+/ 30,-#'+?AV03'/, B')'/#AE30 B')'/#AE30)0./@ )0./@ P@ L3,/& +/.&+,30;# +/.&+,30;# 30,-#'+ 30,-#'+?AV03'/, ?AV03'/, States—Finance. I. Title. II. Title: Film and video budgets. PN1993.5.U6W4915 2015 384’.83’0973—dc23
Printed on Recycled Stock
2014040591
!"#$% '( )'*!%*!+ ACK NOW LE LEDG DGME MEN N TS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .x INTRODUCTION TO THE � T TH H ED EDIT ITIO ION N . . . . . . . . . . . . . xi HOW TO USE THIS BOOK . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .xv PRODUCTION CTION COMP COMPAN AN Y . . . . . . . . . . . 1 � . SETT ING UP A PRODU 50.&+*&+)'3&0 G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G GH Federal ID G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G I Business License G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G I S)0= "..&-0' G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G I Corporate Taxes G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G J "..&-0'30; B&<'7)+/ G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G J "..&-0')0' G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G J "''&+0/? G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G K W>*2&?//# G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G K S/.&>30; ) B3;0)'&+? '& I-32,# )0, V03&0# G G G G G G G G G G G G G G G G G G G L S&0 L&?);/ G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G M PRE�PRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9 � . PRE� Pre-Production Pre-Pr oduction for Fiction Films F ilms G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G N Pre-Production Checklist G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G HI Pre-Pr Pr e-Production oduction for Non-Fiction Films G G G G G G G G G G G G G G G G G G G G G G G G G HK Line Items Checklist G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G HO Legal G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G GHM F3;('# ".G-3#3'3&0 G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G HP X*'3&0 G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G HP Staff Contracts G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G HP Music Clearance G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G HN E)3+ V#/ G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G IQ Feature Film Clips G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G IH Archival Photos and Stock Footage G G G G G G G G G G G G G G G G G G G G G G G G G G G G IJ H(/ S-,;/' G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G IK M/;&'3)'3&0# G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G IL viii vi
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Negotiating with Crews G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G IM Check Refere References nces G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G IM V03&0# G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G JO Payroll Services G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G JM Productions for Large Companies G G G G G G G G G G G G G G G G G G G G G G G G G G G G G JP Below-the-Line Rates G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G JN M/;&'3)'30; <&+ WG-3*>/0' )0, B/+63./# G G G G G G G G G G G G G G G G G G G G G G JN Production Pr oduction Schedule G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G KQ Cash Flow Schedule G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G KQ Casting G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G KQ Post-Production G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G KI Booking Post-Production Facilities G G G G G G G G G G G G G G G G G G G G G G G G G G G G KJ Completion Bond G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G KK 50#-+)0./ G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G KK Locations G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G KO Budgets from All Department Heads G G G G G G G G G G G G G G G G G G G G G G G G G G KP Art Direction/Production and Set Design G G G G G G G G G G G G G G G G G G G G G KN Credit Accounts with Vendors G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G KN Production Forms G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G KN Purchase Orders G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G KN Check Requests/Tracking Costs G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G LQ Contact Sheet G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G LQ Conclusion G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G GLH M ARKETING . . . . . . . . . . . . . . . . . . . . . . 52 �. DEVELOPMENT � MARKETING Development G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G Marketing/Publicity G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G Film Marketing/Publicity Line Items Costs G G G G G G G G G G G G G G G G G G G G Self-Distribution G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G
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� . HIGH DEFINITION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 Sensors and Pixels G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G OH E+)>/ B3J/ G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G OH "#*/.' F)'3&# G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G OJ E+)>/ F)'/ G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G OJ Pull Down G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G OJ Do a Test, Please G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G OK viii
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Codecs/CompressionG G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G OL Bit Depth G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G OO Camera Sensor and Dynamic Range G G G G G G G G G G G G G G G G G G G G G G G G G G OM Look Up Table (LUT) G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G OM Color Sampling G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G OP Conclusion G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G ON BUDGET, LINE BY LINE. . . . . . . . . . . . . . . . . 71 � . A MASTER BUDGET, Above-the-Line Abov e-the-Line and Below-the-Line G G G G G G G G G G G G G G G G G G G G G G G G G G G MI PROJECTS ECTS . . . . 196 �. SAMPLE BUDGETS FOR SPECIFIC PROJ OY PY \Y QY 5) 6) ]Y
ZO@[ 83223&0 M)++)'36/ M)++)'36/ E/)'-+/ E32> S-,;/' G G G G G G G G G G G G G G G G HNM $1 Million Documentary Feature Film Budget G G G G G G G G G G G G G IIJ $625K Narrative Feature Film Budget Template G G G G G G G G G G G IKO $350K Documentary Feature Film Budget G G G G G G G G G G G G G G G G G IMH $145K Industrial/Short Documentary BudgetG G G G G G G G G G G G G G INQ $125K Narrative Narrative Feature Film Budget G G G G G G G G G G G G G G G G G G G G G G JQN ZPRN B'-,/0' B'-,/0' B(&+' E32> S-,;/' S-,;/' G G G G G G G G G G G G G G G G G G G G G G G G G G JJQ
APPE A PPEND NDII X . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .349 Cost-Saving Ideas G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G JKN Cost-Saving F/#&-+./# G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G JLK Directories G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G JLK Trade Publications G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G JLL S&&=# G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G JLO B&<'7)+/ G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G JLP 83#./22)0/&-# F/#&-+ F/#&-+./# ./# G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G JLP H+),/ "##&.3)'3&0# G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G JLP Budgets for Grants and Donations G G G G G G G G G G G G G G G G G G G G G G G G G G G JOI ABO A BOU U T T HE AU AUT T HO HOR R . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 365
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on’t read the whole thing! (Feel better already?) However, ?&- 7322 0//, '& -0,/+#')0, /6/+? 230/ 3'/> 30 ?&-+ %-,;/'4 and therefore I recommend that you first read the Line Items in Chapter 5 to familiarize yourself with the meanings of the budget 3'/># 5 -#/ 30 '(/#/ %-,;/'#@ Next, ip directly to the budget template that is closest to the *+&1/.' ?&- )+/ ,&30; 30 .&#' )0, .)'/;&+?@ H(/#/ %-,;/'# #(&-2, ;/' ?&- [R^ &+ >&+/ &< '(/ 7)? '& ,/'/+>3030; ?&-+ &70 %-,;/'#@ If your type of production is not listed, then go through the Line 5'/>#4 #/2/.'30; '(&#/ ' (&#/ 3'/># ?&-:22 -#/ 30 ?&-+ *+&,-.'3&0@ 8&#' *+&C ,-./+# /K.//, '(/3+ %-,;/' %/.)-#/ '(/? <&+;/' #&>/'(30;_ H()':# 7(/+/ '(/ 30<&+>)'3&0 30 '(3# %&&= 7322 (/2*@ 5' 3# 6/+? '(&+&-;( '(&+&-;( )0, should give you the condence that you are covered. Another thing: Do not take the numbers that I use as gospel. These numbers only approximate what things cost. You can’t just ')=/ '(/#/ 0->%/+# )0, *2-; '(/> 30'& ?&-+ &70 %-,;/'#@ 50#'/),4 research your own production costs. You may nd that your line 3'/># >)? %/ 2&7/+@ 50 ),,3'3&04 ?&- >-#' 0/;&'3)'/ `>&+/ &0 '(3# 2)'/+Y '& ;/' '(/ %/#' %-,;/' *&##3%2/@ 12 324 5267 489 :;49< =3 489<9 >?@A94 49B6C;49<@ 49B6C;49<@ B&++?4 %-' '(/+/ )+/ 0& #(&+'.-'# 7(/0 3' .&>/# to budgeting. You may grumble now, but you’ll thank me when you nish your production and still have some money left! E30)22?4 )# '(/ &70/+ &< '(3# %&&=4 ?&- ()6/ '(/ *+3632/;/ &< ,&702&),30; A <+// &< .()+;/ A )22 '(/#/ %-,;/' '/>*2)'/# <+&> '(/ *-%23#(/+:# 7/%#3'/ )' << <&+ ?&-+ &70 -#/@ 8)=/ .-#'&> '/>*2)'/#4 ),, &+ ')=/ )7)? 230/ 3'/>#4 )0, >&#' 3>*&+')0'2?4 30*-' ?&-+ &70 0->%/+#@
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6/+?&0/ ()# '& %/;30 )' '(/ %/;30030;@ 5< ?&- .)+/<-22? <&22&7 '(/ ),63./ 30 '(3# %&&=4 '(/#/ ).'363'3/# 7322 (/2* ?&- ;/' ?&-+ &70 *+&,-.'3&0 .&>*)0? -* )0, +-0030;@ H(30= &< '()' 7)+> #)'C 3#<).'3&0 '()' 7322 .&>/ &6 &6/+ /+ ?&- /6/+? >&+030; 7(/0 ?&- +/), ?&-+ company’s name on the door as you enter your office. Hey, we did it! 9/:+/ ) +/)2 .&>*)0?_ E&+ >)0?4 #')+'30; ?&-+ &70 *+&,-.'3&0 .&>*)0? >)? #//> ,)-0'30;@ H(3# .()*'/+ 7322 (/2* ,3##&26/ '()' /,@ H)=/ '(30;# &0/ #'/* )' ) '3>/ )0, ?&-:22 ;/' '(/+/@ X0./ 3':# ,&0/4 ?&-:22 ()6/ ) <&-0,)'3&0 '& %-32, &0@ INCORPORATION
H& 30.&+*&+)'/ @ @ @ &+ 0&' '& 30.&+*&+)'/a 8&#' 2)7?/+# 7322 #-;C ;/#' '()' ?&- 30.&+*&+)'/ 30 &+,/+ '& *+&'/.' ?&-+ */+#&0)2 )##/'# <+&> 23)%323'?@ If you are a United States resident and plan to have thirty-ve &+ )?%/ 1-#' &0/ #'&.=(&2,/+4 ?&-Y4 >&#' accountants accountan ts will reco recommend mmend an S Corpora Corporation tion or a Limited Liability Company (LLC). With an S Corporation or LLC, your company owes no federal income tax on prot. The prot passes through the com C *)0? ,3+/.'2? '& #'&.=(&2,/+# `'()' 30.2-,/# ?&-_Y@ H(/ .&>*)0? 7322 #'322 *)? #')'/ 30.&>/ ')K4 7(3.(4 3< ?&- *)? &-' &+ +/306/#' )22 ?&-+ prots at year-end, may only be the minimum. How much does it cost to incorporate? It depends on the state )0, &0 '(/
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also online websites that streamline the process. You’ll probably want your attorney to look it over before you nalize the paperwork. 5< ?&- )2+/),? ()6/ )0 )..&-0')0'4 >)?%/ (/ &+ #(/ >)? %/ )%2/ '& ,& 3' <&+ ?&- 30/K*/0#36/2?@ 5< ?&- .(&&#/ 0&' '& 30.&+*&+)'/4 '(/0 3':# *+&%)%2? ) ;&&, 3,/) '& /#')%23#( ?&-+ .&>*)0? -0,/+ ) '+),/ 0)>/ &'(/+ '()0 ?&-+ &704 known as “d/b/a” (doing business as). Your accountant can help you 73'( '(/ )**23.)'3&0 *+&./##@ FEDERA FEDE RA L ID Whether you are incorporated or d/b/a, you still must apply for a federal ID (or EIN) number, which you need if you plan to pay the people who work on your projects. The ID number exists to help the 5FB 73'( 3'# )..&-0'30;@ I& '& <<%/+@ <</0' ?&- +/./36/ 7322 0&7 %/ 7+3''/0 '& '(/ .&+*&+)'3&0 )0, 0&' '& ?&- */+#&0)22?@ BUSINESS LICENSE Depending on the regulations for your city and state, you may need to get a business license for your company. Check online for the requirements if you start a company, a d/b/a, or an LLC. BANK ACCOUNT You cannot open a corporate bank account until you have your artiC arti C cles of incorporation (which you prepare before ling for corporation status), or your Operating Agreement if you’re an LLC, and your fed C eral ID number. The bank will require copies of these documents. E&+ #>)22/+ .&>*)03/#4 &0/ %-#30/## .(/.=30; )..&-0' #(&-2, suce. Ask if it can be an interest-bearing account, which might help oset fees banks charge for business accounts.
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business structures like S Corporations and some LLCs don’t require ?&- '& *)? / ')K@ ACCOU ACC OUN N T IN ING G SO SOF F T WAR E 50 >&#' #>)22 .&>*)03/#4 */&*2/ ,& '(/3+ &70 %&&==//*30;4 &+ (3+/ a bookkeeper who may come in once a week or more. Production )..&-0')0'# #&>/'3>/# -#/ (3;(C*&7/+/, #&<'7)+/ #-.( )# L3#') )0, 8/,3) 9/%@ ACCOU ACC OUN N TA TAN N T Your accountant can help you incorporate, give business planning advice, project a business budget, supply you with W-2 and I-9 tax payroll forms, and le your corporate and personal tax returns. Your accountant will become one of your greatest allies. First, he &+ #(/ 7322 (/2* ?&- #/' -* ?&-+ %-#30/##4 >)=30; #-+/ ?&- ,&0:' >3## any ling or tax deadlines. This is their business. What may be hard <&+ ?&- 3# /K'+/>/2? /)#? <&+ '(/>@ H(/? 7322 /01&? '(/3+ +/2)'3&0#(3* with a lm or video producer because in the same way that numbers bae you, movies bae them!
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ATTO AT TOR R N E Y Your attorney should be an *'/*2/&"'$*'/ )''&+0/?4 ,3#'30.' <+&>4 <&+ /K)>*2/4 ) .&+*&+)'/ &+ +/)2 /#')'/ )''&+0/?@ W0'/+')30>/0' )''&+C 0/?# =0&7 '(30;# '(/ +/#' &< -# ,&0:' %-' #(&-2, A 23=/ *+&,-.'3&0 .&0'+).'#4 &*'3&0# )0, +3;('# ).G-3#3'3&04 23./0#30; )0, +/2/)#/# &< /6/+? #'+3*/@ Your attorney should be someone whom you know and respect. B&>/&0/ 7(& .)0 ;/' '(30;# ,&0/ 30 3 0 '(/ /0'/+')30>/0' .&>>-03'?@ .&>>-03'?@ W6/0 3< '(3# .&#'# >&+/ `&0 )0 (&-+2? %)#3#Y4 ?&- 7322 %/ 7)? )(/), &< '(/ ;)>/ 7(/0 ?&- 7)0' '& ,& #&>/'(30;4 7(/'(/+ 3':# .2 )0 306/#'>/0' ,/)2 &+ ;/''30; ) ,3#'+3%-'3&0 .&0'+).'@ 50 ),,3'3&04 )# ?&- 7&+= 73'( ?&-+ )''&+0/? ?&- 7322 ;)30 ) ;+/)' ,/)2 &< =0&72/,;/ yourself that will be of immeasurable benet over the years. EMPLOYEES Even in Hollywood, many incorporated production companies are >),/ -* &< 0& >&+/ '()0 &0/ &+ '7& */&*2/@ 9(/0 ?&- )+/ 30 *+&C ,-.'3&0 ?&- ()6/ >)0? */&*2/ &0 #)2)+?@ 9(/0 ?&- )+/ ,/6/2&*30; ?&-+ *+&1/.'# ?&- 7)0' '& ()6/ *2&?//# '& =//* ?&-+ &6/+(/), .&#'# ,&70@ 50 '(/ %/;30030; ?&- 7322 *+&%)%2? (3+/ ) <-22C'3>/ )##3#')0' '& (/2* 73'( '(/ ),>303#'+)'36/ .(&+/#4 7(3.( 7322 %/ >)0?@ "# ?&-+ business grows, others will be brought on. Here’s where you want to hire the right people for the job. You want people that supple C >/0' A 0&4 .&>*2/>/0' A ?&-+ #=322#@ 5< ?&- )+/ 0&' /K'+/>/2? 7/22 &+;)03J/,4 '(/0 2&&= <&+ '(3# G-)23'? 30 '(&#/ ?&- (3+/@ 5< ?&- )+/ 7/22 &+;)03J/,4 '(/0 ?&- >)? 7)0' >&+/ .+/)'36/ '?*/# <&+ '(&#/ )#*/.'# of your business. Do not hire someone just like you, because your )3> 3# '& %)2)0./ ?&-+ .&>*)0?@ Create a fun atmosphere for people to work in and your produc C '363'? 7322 #&)+@ 8)=/ #-+/ '(/? )+/ <+// '& >)=/ .&0'+3%-'3&0# '& '(/ *+&1/.'# )0, .+/,3' '(/> )**+&*+3)'/2?@ I3630; .+/,3' 3# &0/ &< '(/ /)#3/#' `)0, .(/)*/#'Y '(30;# ?&- .)0 ,&@ 5':# ) 7)? &< #)?30; '()0=# '()' ;&/# ) 2&0; 7)?@ �
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BECOMING A SIGNATORY TO GUILDS AND UNIONS
You may or may not have to deal with guilds, but in case you do, these are the main guilds (see Appendix for addresses): the Writers Guild of America (WGA), Directors Guild of America (DGA), and B.+//0 ".'&+# I-32,C">/+3.)0 E/,/+)'3&0 &< F),3& )0, H/2/63#3&0 "+'3#'# `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ou can be a signatory to one guild/union or many — it is up to '(/ &70/+ &< ) *+&,-.'3&0 .&>*)0?@ X0/ *+&,-./+ 5 =0&7 ()# '(+// dierent companies: one a signatory to SAG-AFTRA, one a signaC tory to SAG-AFTRA and the DGA, and one that is not a signatory to anything. Why go through that paperwork nightmare? He wants to )6&3, ,/)230; 73'( +/#3,-)2 *)?>/0'# <&+ ./+')30 *+&1/.'#4 )0, )6&3, paying the extra expense of pension and health (P&H) that guilds require — usually around 15% to 17% of the member’s gross salary. (For really high salaries, like a star’s, there is a cuto beyond which the company does not have to pay P&H. Check with each guild for 7()' 3' 3#@Y 9I" `9+3'/+# I-32, &< ">/+3.)Y A H& %/.&>/ ) #3;0)'&+? )0, (3+/ 9I" 7+3'/+#4 ?&-+ .&>*)0? >-#' %/ 2/;)22? #'+-.'-+/,4 )# 30 )0 S Corporation (not a d/b/a). Simply call and request the application �
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forms. There is no fee to become a signatory. Your company cannot ,3#/0;);/ <+&> #3;0)'&+? #')'-# -0'32 '(/ .-++/0' 9I" );+//>/0' expires, and these agreements run for about ve-year terms. You can .(/.= &-' '(/ .-++/0' 8303>-> S)#3. ";+//>/0' `8S"Y &0230/4 as well as other Agreements and Contracts, e.g., “Low-Budget” and “Standard Theatrical.” www.wga.org B"IC"EHF" `B.+//0 ".'&+# I-32,C">/+3.)0 E/,/+)'3&0 &< F),3& )0, H/2/63#3&0 "+'3#'#Y A H(/ .&>*)0? >-#' %/ 2/;)22? #'+-.'-+/, (not a d/b/a, although there may be exceptions). There There are a number &< .&0'+).'# .&>*)03/# .)0 #3;04 ,/*/0,30; &0 7()' '?*/ &< *+&C ;+)>>30; '(/? *+&,-./ `/@;@4 <+// HL4 .)%2/4 *-%23. HL4 0/7 >/,3)4 /'.@Y@ H(/+/ 3# 0& *)0? >)? ()6/ '& *+&63,/ ) %&0, to cover payment of actors. Bonds can be in the form of a certied .(/.=4 &+ ) 2/''/+ <+&> ) *)?+&22 #/+63./ )''/#'30; '()' >&0/? 3# &0 account. Check the respective websites for contracts and/or digests &< );+//>/0'#@ 777@#);@&+; DGA (Directors Guild of America) — The company could be a d/b/a or incorporated or a partnership. The application requests 30<&+>)'3&0 )%&-' #'&.=(&2,/+# )0, &70/+#(3*@ 5' )#=# <&+ ,&.-C mentation, like a copy of the ctitious name statement or articles &< 30.&+*&+)'3&0@ 50 >&#' .)#/#4 '(/ .&>*)0? >-#' ()6/ ) *+&1/.' 230/, -* 30 &+,/+ '& %/.&>/ ) #3;0)'&+?@ H(/? 7)0' '& =0&7 7()' the project is, what DGA member functions you’ll be hiring, where the nancing comes from, and if you have a distributor. Basically, they want to make sure members will be paid. If the nancing looks shaky, they may ask you to put the DGA money in escrow. For TV >&63/# )0, )? ,/>)0, ) #/.-+3'? );+//>/0' '()' puts a lien on the lm in case you go bankrupt. That way they can %/''/+ .&22/.' )0? +/#3,-)2#@ H(/+/ 3# 0& &63/# )+/ +/*+/#/0'/, %? '(/ 50'/+0)'3&0)2 "223)0./ &< H(/)'+3.)2 )0, B');/ W>*2&?//# `5"HBWY4 )0, ) (&#' &< &'(/+ 2&.)2#4 30.2-,30; '(/ H/)>#'/+# `'(/ */&*2/ 7(& ,+36/ )22 '(/ #'-,3& '+-.=#
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and vans). Because it is so complicated, it can be dicult to get #3;0)'&+? 30<&+>)'3&0@ E3+#' &< )224 3< ?&-:+/ ) #>)22 *+&,-.'3&0 .&>*)0? ,&30; 6/+? 2&7C %-,;/' *+&1/.'#4 ?&- *+&%)%2? 7&0:' %/.&>/ ) #3;0)'&+? '& 5"HBW %/.)-#/ ?&-+ %-,;/' 7&0:' %/ )%2/ '& #-**&+' '(/ #)2)+3/# )0, %/0C ets packages. But IATSE now has low-budget agreements so you should nd out if they can work for your production before making a nal decision. 9(? %/.&>/ ) #3;0)'&+? '& 5"HBWa H(/ '(/&+? ;&/# '()' -03&0 .+/7# `.)>/+) &*/+)'&+#4 #&-0, >3K/+#4 ;+3*#4 /2/.'+3.#4 /'.@Y )+/ >&+/ experienced, hence more ecient. This is usually true — although '(/+/ )+/ *2/0'? &< /K./22/0' */&*2/ 7(& )+/ 0&' -03&0 >/>%/+#@ 9(/0 ?&- (3+/ -03&0 .+/7# <&+ #.)2/ `#&>/ &#' >)1&+ .3'3/# 30 '(/ V03'/, B')'/#@ H& %/.&>/ ) #3;0)'&+?4 .(/.= &-' <<*)03/#4 '(/+/: '(/+/:## 0& fee. If you can’t nd the right oce, call a payroll service (a com C *)0? '()' ()0,2/# -03&0 )0, 0&0C-03&0 *)?+&22 <&+ *+&,-.'3&0 .&>*)03/#Y4 #30./ '(/#/ */&*2/ #//> '& =0&7 ) 2&' )%&-' -03&0#@ BON VOYAGE 5' >)? ')=/ ?&- ) 7//= &+ '7& &+ #/6/+)2 >&0'(# '& .&>*2/'/ )22 '(/ *)*/+7&+= +/G-3+/, '& #/' -* ?&-+ *+&,-.'3&0 .&>*)0? )# ) .&+*&C +)'3&0 )0, %/.&>/ ) #3;0)'&+? '& #&>/ &+ )22 &< '(/ -03&0#@ 9(/0 you do set up your rst corporation you’ll nd that it isn’t as intimiC intimi C ,)'30; )# ?&- '(&-;('4 )0, ?&-:22 *&7/+/,@
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$94P< >9 5C9;: 48;4 48=< 58;649: =< E2: =CC?<4:;4=Q9 6?:62<9< 23C7R H(/#/ %-,;/'# #(&7 /K)>*2/# &< (&7 *+&,-./+# *2)0 )0, %-,;/' <&+ real world situations, albeit hypothetical ones. Please do not fall into '(/ '+)* &< ')=30; ) #)>*2/ %-,;/' )0, )**2?30; 3' '& ?&-+ *+&1/.' without doing the proper research that will be necessary for any lm you produce. Every project is dierent and requires its own creative '(30=30; )0, %-,;/'30;@ H(/ #)>*2/ %-,;/' '/>*2)'/# '()' <&22&7 )+/ ,/#3;0/, '& .&6/+ '(/ >&#' .&>>&0 <&+># &< *+&,-.'3&0 '()' >&#' 30,/*/0,/0' *+&C ducers will encounter across ction and non-ction projects. After /).( %-,;/' '/>*2)'/ '(/+/ 7322 %/ ) S-,;/' "##->*'3&0# *)+);+)*( '()' &-'230/# '(/ .&0'/K' <&+ '()' *)+'3.-2)+ %-,;/':# .+/)'3&0@ H(/0 '(/+/ 3# ) #-..30.' 230/C%?C230/ /K*2)0)'3&0 30 /).( .)'/;&+?@ F/*2/# &< ,&22)+ /#'3>)'/# <&+ /).( 230/ 3'/> )# 7/22@
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$�.. � MILLION NARRATIVE FEATURE FILM BUDGET $� !2 @2D3C2;@ 72?: E:99 %F59C >?@A94 49B6C;49G I& '& <<*-'/+@ .&>*-'/+@ B)6 Last, this budget is a sample template. Make sure to create your budget with gures based on your research on current rates )0, *+3./# )6)32)%2/ '& ?&-@ #?@A94 "<#'/+# .&0'+).' <&+ '+)0#*&+')'3&0 2)%&+ %-' '()' will need to be conrmed during Pre-Production. The director is not DGA so the Assistant Directors and UPM will 0&' %/ <+&> '()' ;-32,@ H(/ 7+3'/+ 3# ) 9I" >/>%/+ #& '(/ #.)2/ *-+.()#/ *+3./ )**23/#@ W6/+?&0/ 7322 %/ *)3, '(+&-;( ) *)?+&22 #/+C 63./ #& '(/ <+30;/# )+/ ;/0/+)22? #/' )' PP^@ H(/ ,)? +)'/# )+/ <)3+2? low but the added Pension and Health costs contribute to the overall ;+&## #)2)+? .&#'#@ H(/ *+&,-./+# *2)0 '& #/22 '(/ 30,3/
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